Mumbai based Godrej Properties Ltd. has fixed the price band for its initial public offering (IPO) of 94,29,750 equity shares of Rs 10 each, at Rs.490-530 per share. The issue will open for subscription on December 9 and will close on December 11, 2009.
GPL will raise around Rs.462 Cr – Rs.500 Cr through this issue, of which 30% would be used to repay debt i.e. around Rs.140-160 Cr. The issue will constitute 13.5% of the post issue paid-up capital of the company. Parent company, Godrej Industries currently holds 80.26% of equity share capital in the company.
It is in the business of real estate development in India. It currently has real estate development projects in 10 cities in India, which are at various stages of development. The proceeds of the issue will be used for acquisition of land development rights for forthcoming projects; construction of forthcoming project and repayment of loans.
The equity shares are proposed to be listed on the BSE and NSE. For the year ended March 31, 2009, the company reported profit after tax of Rs.74.74 Cr on total income of Rs.188.13 Cr. As on June 30, 2009, it has debt of Rs.745.78 Cr on its books. Later the debt would come down to around Rs.600 Cr.
Global Coordinators and book running lead managers to the issue are ICICI Securities Limited, Kotak Mahindra Capital Company Limited, IDFC – SSKI Limited and Nomura Financial Advisory & Securities (India) Private Limited. Karvy Computershare Private Limited is the registrar.
The IPO of GPL will re-rate Godrej Industries & we might see some positive movements happening in stock price of Godrej Ind.
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