Godrej Properties (GPL), a real estate development company, has filed its DRHP with SEBI on 3rd June, 2008, to enter the capital market with a public issue of 94,29,750 equity shares of Rs 10 each at a price to be determined at a later stage through the book building process.
The issue will constitute 13.5% of the post issue paid-up capital of the company.
The company proposes to list its shares on BSE and NSE and the BRLMs to the issue are ICICI Securities and Kotak Mahindra Capital.
The object of the issue is for acquisition of construction and development rights for the company's forthcoming projects; for repayment of loans and for general corporate purposes.
The company intends to deploy Rs 505.84 crore from the issue proceeds to part finance the acquisition of land development rights and construction of the company's projects in the pipeline and Rs 150 crore for repayment of loans.
Mumbai-based GPL has real estate development projects in 11 cities in India which are at various stages of development. The company's thrust is on residential, commercial and township developments. GPL is presently engaged in the construction of the tallest residential towers in the country comprising of 50 storeys.
GPL undertook its first project - Godrej Edenwoods in Thane in 1991 and have since completed and delivered 19 projects aggregating approximately 3.62 million square feet in Mumbai and Pune. It initially concentrated its operations in Mumbai Metropolitan region and later expanded to other metro cities. The company plans to develop properties admeasuring about 20 million sq ft in Mumbai, Bangalore, Pune, Hyderabad, Kolkata and Chennai. These include residential, IT parks and commercial establishments. Recently, the company has alsoforayed into Ahmedabad, Mangalore, Chandigarh and Greater Noida.
The company's total land reserves currently stands at 404 acres.
The parent company - Godrej Industries (GI) will be offloading 10% in the company. Currently GI owns 82%, while the family 18% in the company. With this offloading, GI's holding will come down to to 75% and that of the family to around 15%. The Godrej group companies includes Godrej & Boyce Manufacturing, among others.
The company posted a total income of Rs 137.26 crore and a net profit of Rs 29.21 crore for the year ended 31st March 2007, as compared to the total income of Rs 70.46 crore and net profit of Rs 12.13 crore for the year ended 2006-07. For the nine months period ended 31/12/2008, the company recorded a total income of Rs 227.50 crore and a net profit of Rs 75.92 crore.