Realty firm Godrej Properties Ltd today said it plans to raise up to Rs. 500 crore through an initial public offer to fund projects and retire part of its debt.

The IPO will hit the capital market on December 9. The company, having presence in ten cities across the country with about 25 projects in hand, will enter the market with an issue size of 94.29 lakh equity shares, constituting 13.5 per cent of the post issue paid-up capital of the firm.

It has fixed a price band of Rs. 490-530 per equity share.

At the upper end of the band, the company would raise Rs. 499.8 crore.

Last year, the company had planned to come out with the IPO but shelved it due to volatile market conditions in the wake of the global slowdown.

“Last year, we had filed draft red herring prospectus (DRHP), but did not file RHP due to bad market condition. This year, we are certainly going ahead and the issue will open on December 9. We have received good response from investors,” company’s executive Director Pirojsha Godrej told reporters.

The company plans to sell up to 18 per cent of shares worth about Rs. 90 crore to anchor investors, he said.

Of the total proceeds from the IPO, the company intends to utilise Rs. 203 crore to acquire land development rights for three projects, while Rs. 75 crore would go towards meeting the construction cost of a commercial project in Chandigarh.

The company would use Rs. 172 crore to repay part of its Rs. 800 crore debt, Godrej said.

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