Mumbai, 3rd December 2024
Godrej Properties Limited (GPL), a prominent name in the Indian real estate industry, has successfully raised ₹6,000 crore through a Qualified Institutional Placement (QIP). This marks the largest QIP by a real estate developer in India and underscores strong investor confidence in the company’s growth trajectory.
The offering witnessed overwhelming demand, nearly four times the initial size of the QIP. The investor pool included renowned global and domestic entities such as GIC, BlackRock, Aberdeen, Norges Bank, SBI Pension Fund, and ICICI Prudential Life Insurance.
Following the capital infusion, GPL’s net worth has surged by over 50%, with an equity dilution of 7.68%. The company’s net debt-to-equity ratio has improved significantly, dropping to below 0.2:1 from 0.7:1 as of September 30, 2024.
Speaking on the development, Pirojsha Godrej, Executive Chairperson of Godrej Properties, said, “We are thrilled by the overwhelming response to our QIP. This support from the investment community is a testament to our strategy and performance. With this capital, we aim to scale our operations, strengthen our balance sheet, and accelerate business development while continuing to deliver value to our stakeholders.”
A Strong Growth Trajectory
Godrej Properties has demonstrated remarkable growth in recent years, with a 56% increase in bookings in FY23, 84% in FY24, and a staggering 90% growth in the first half of FY25. The company has already surpassed its FY25 business development guidance of ₹20,000 crore in estimated booking value within the first seven months of the fiscal year.
Pirojsha Godrej added, “Over the last few years, GPL has redefined its scale, achieving consistent growth in bookings and strengthening its market position. This capital raise will allow us to expand our project pipeline, execute launches across key markets, and maintain a strong balance sheet. We are committed to driving market share gains and margin improvements while delivering sustainable growth.”
Strategic Utilization of Funds
The funds raised will be used to expand GPL’s project pipeline, allowing the company to capitalize on opportunities in India’s growing real estate market. With launches planned across seven cities in the upcoming quarters, GPL aims to sustain its momentum and surpass its FY25 booking value guidance of ₹27,000 crore.
Industry Leadership
In FY25, Godrej Properties emerged as the largest real estate developer in India by bookings and the fastest-growing large business across sectors in FY24, achieving an impressive 84% sales growth.
The QIP was managed by Jeffries, Morgan Stanley, Bank of America, and Kotak Mahindra Bank, ensuring a seamless and successful fundraising process.
