Godrej Properties IPO Price Band at Rs. 490-530/Equity-Share – Godrej Properties has fixed its IPO (Initial Public Offering) price band at Rs. 490-530 per equity share that is scheduled to open for subscription on December 9. Grounded on calculations, at the upper end of the price band the company has been planning to arouse approx. Rs. 500 crores via its IPO (Initial public offer).
Godrej Industries stated in a filing done to Bombay Stock Exchange that the IPO committee of Godrej Properties has sanctioned the price band of the issue between Rs. 490 and 530 per equity share. On the other hand, Real Estate Company has been planning to get in the primary market with an issue size of 94.29 lakh equity shares, which will make up 13.5% of the post issue paid-up capital of the company.
Encouraged by Godrej Industries and Godrej & Boyce manufacturing company, Godrej Properties has plans to utilize Rs. 203 crore for attaining land for its upcoming and approaching projects and passes Rs. 172 crore for loan repayment.
Despite, the amount of Rs. 75 crore will be used for construction of its upcoming projects in 3 years period of time. Previous year, the company had contrived to come out with IPO but postponed it outstanding to volatile market situations in the awake of global slowdown.
The funds will be used debt repayment, joint development projects and new projects, according to Godrej group Chairman Mr. Adi Godrej stated. Approx. 2.03 billion will be used for land acquisition, 1.72 billion to lower down debt and 750 million for construction. Constituting about 13.5% of company’s post issue capital, atleast 60% of this is reserved for institutional buyers and minimal of 30% for retail investors and other 10% reserved for non-institutional buyers. This year, 15 Indian companies have aroused over $3 billion in IPOs.
The global coordinators and book running lead managers are Kodak Mahindra Capital and ICICI Securities whereas book running lead managers to the issue were Nomura Financial Advisory and Securities (India) and IDFC-SSKI.
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