Godrej Properties announced that it has raised Rs 6,000 crore through the QIP route.
The issue saw a strong demand of ~4X the size of the QIP and was fully covered with long only demand. The issue also had a healthy mix of leading international and domestic investors including GIC, Blackrock, Aberdeen, Norges Bank, SBI Pension, and ICICI Prudential life Insurance.
As a result of the QIP, GPL's Net Worth has increased by more than 50% while the equity dilution was 7.68%. GPL's gearing ratio will come down to below 0.2:1 from 0.7:1 as of 30 September 2024.
With bookings growth of 56% in FY23, 84% in FY24 and 90% in H1 FY25, GPL has achieved a tremendous growth trajectory in recent years and is well positioned to substantially surpass its FY24 booking value guidance of 27K crore.
GPL intends to use the net proceeds received from this issue to build a project pipeline that allows it to scale the business rapidly in the years ahead. GPL has already surpassed its business development guidance for FY25 of Rs 20,000 crore of estimated booking value in the first 7 months of the year and continues to have strong visibility for rest of the year.
Godrej Properties was the largest real estate developer in India by bookings in FY25 and the fastest growing large business in India across sectors in FY24 with sales growth of 84%.
Jeffries, Morgan Stanley, Bank of America, and Kotak were the bankers for the QIP.