Godrej Properties Ltd. (GPL), part of the Godrej group, is entering the capital market with an initial public offer of 94.30 lakh equity shares of Rs. 10 each at a price to be decided through a 100 per cent book-building process for mobilising up to Rs. 500 crore. The company has fixed the price band between Rs. 490 and Rs.530 a share. The issue opens on December 9 and closes on December 11.
Addressing presspersons here on Monday company Managing Director Milind Korde said the issue proceeds would be utilised for acquisition of land development rights and construction for the forthcoming projects, repayment of loans and general corporate purposes.
He said the company had completed a total of 23 projects comprising 16 residential and seven commercial projects, totalling 5.13 million sq. ft. It had now 83 million sq. ft. under development. It now had a presence in 11 cities.
New business model
Mumbai Special Correspondent writes:
Godrej Group Chairman Adi B. Godrej said “We have a unique business model where projects are joint developments with landowners either within or outside the group. It de-risks the business from market fluctuations and provides a high return on investment and capital appreciation.” GPL Executive Director Pirojsha Godrej said “our business is almost entirely predicated on the joint venture model with a land owner or developer where we share either profits/area or revenue.