Godrej Properties to raise Rs3000 crore over next three years
06 January 2010After its Rs462-crore initial public offer last year, real estate developer Godrej Properties yesterday disclosed plans to raise Rs2,000-3,000-crore through debt or equity to fund its expansion plans over the next two to three years.
"We plan to raise this amount to fund the future expansion plans," Godrej Group chairman Adi Godrej told reporters on the sidelines of the company's listing ceremony on the Bombay Stock Exchange. The company's shares gained as much as 20 per cent on the first day of BSE listing.
Godrej said the company was looking at various options to raise money, including the qualified institutional placement route, adding that the promoters will dilute stake from the current 86 per cent in the event of a QIP.
Godrej Properties is currently undertaking several real estate development projects across 10 cities in the country. Projects are at various stages of development, Godrej said. The company expects to become a major player in the affordable housing segment by offering housing units in the range of Rs25-30 lakh, he added.
"In the period ahead, we will see affordable housing picking up strongly in the country. We are very committed to play a significant role in this segment," he said.
Executive director Pirojsha Godrej, Adi's son, added, ''We see demand for homes quite strong. There is now greater confidence in the Indian economy. We see the industry performing well for many years.''
The company also plans to start land development in the Mumbai suburb of Vikhroli by this year end. "This project will be a mixed of commercial and residential, with 50-60 per cent of commercial space. We expect to earn revenue from the first phase of the project from 2012," Godrej said.
The project will be developed as a joint venture between Godrej & Boyce and Godrej Industries. Besides, it has also entered into several agreements with other group companies to develop various projects at Vikhroli project, he said.
Adi Godrej said that the company plans to launch the first phase of its 330-acre Ahmedabad project over the next few weeks and aims to complete the project over the next 10 years. This will consist of 70 per cent housing and will start delivery in 2012.
Godrej said the company expects to maintain an EBITDA of 40-45 per cent in projects in the period ahead.