Godrej Properties surges over 4%, S&P BSE Realty index rises 1.78%

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Godrej Properties Ltd rose 4.15% today to trade at Rs 1512.05. The S&P BSE Realty Index index is up 1.78% to quote at 2835.46. The index is up 2.46 % over last one month. Among the other constituents of the index, Prestige Estates Projects Ltd increased 2.8% and Indiabulls Real Estate Ltd added 2.41% on the day. The S&P BSE Realty Index index went up 43.72 % over last one year compared to the 44.16% surge in benchmark SENSEX.

Godrej Properties Ltd has added 6.11% over last one month compared to 2.46% gain in S&P BSE Realty Index index and 0.05% rise in the SENSEX. On the BSE, 1606 shares were traded in the counter so far compared with average daily volumes of 39006 shares in the past one month. The stock hit a record high of Rs 1573.45 on 01 Mar 2021. The stock hit a 52-week low of Rs 505.95 on 24 Mar 2020.

In a regulatory filing, Godrej Properties said the QIP committee of the board of directors, in its meeting held on Tuesday, approved and adopted the preliminary placement document in connection with the issue.

It also approved the opening of the issue from 9 March 2021. The panel approved the floor price for the issue at Rs 1,513.39.

The floor price is at 4.24% premium to Godrej Properties’ closing price of Rs 1451.85 on Tuesday. The board is scheduled to meet on 15 March 2021 to fix the issue price of the equity shares to be allotted to qualified institutional buyers, pursuant to the Issue.

Godrej Properties did not disclose the amount it has proposed to raise through QIP. On Monday, the company’s shareholders approved the proposal to raise up to Rs 3,750 crore through the issue of securities.

The company intends to use QIP proceeds to meet the funding requirements for existing and new development projects, to fund business growth, business purposes, capital expenditure and general corporate purposes as per growth and business related plans. The company said it also requires funding for servicing, repaying, prepaying and refinancing of loans to reduce cost of indebtedness.

Godrej Properties is engaged in construction and real estate development. The company’s consolidated net profit tumbled 69.3% to Rs 14.35 crore on a 55.5% fall in net sales to Rs 170.49 crore in Q3 FY21 over Q3 FY20.

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