This Article is From Mar 23, 2012

Godrej Properties up; share sale programme oversubscribed by 17%

Godrej Properties up; share sale programme oversubscribed by 17%

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New Delhi:

Godrej Properties' issue of shares to institutional buyers on Thursday oversubscribed by 17 per cent and the company is looking to raise about Rs 475 crore that would be utilised to cut debt and acquire realty projects. Its share price is up 3 per cent on the Bombay Stock Exchange in early morning trade. 


According to data available on the BSE, Godrej Properties received bids for 86,96,153 shares till 1700hrs.


The size of the Institutional Placement Programme (IPP), which closed today, was up to 74,42,555 shares  with a right to allot an additional up to 7,44,255 shares in case of over subscription. Price band has been fixed at Rs 575-620 a share.


In a statement, Godrej Properties, a part of Godrej Group, said that it has successfully concluded the issue and became the first Indian company to take IPP route after it was introduced by SEBI earlier this year.


"We are very pleased to have successfully concluded the first ever IPP in India. In difficult market conditions, this deal demonstrates the confidence investors have in our company," company's Executive Director Pirojsha Godrej said.


According to sources, the company is looking to raise about Rs 475 crore through private placement of shares.


The large existing shareholders have participated in the bidding process along with few new large institutional buyers, they added.


Including the green-shoe option, the company would issue up to 81,86,810 shares and raise Rs 507.58 crore at upper band and Rs 470.74 crore at lower band.


The company's market cap currently stands at Rs 4,443 crore. Promoters held 83.79 per cent stake in the company as on December 31, 2011.


The company intends to use the net proceeds to reduce its current debt of about Rs 2,000 crore, acquisition of land development rights and general corporate purposes.