MUMBAI: Godrej Properties, the real estate arm of Godrej Group, on Wednesday raised Rs 2,100 crore through sale of shares through the QIP (Qualified Institutional Placement) route, making it yet another successful realty issue in the current calendar year.
The floor price, the company said in a stock exchange filing, was fixed at Rs 928 per share and the QIP committee of the board would meet on Friday to consider and approve the issue price. Godrej, which was in the market to raise funds for expansion of its real estate business and refinance debt, sold 10 per cent of its current capital size. The floor price was at 5.8 per cent discount to Tuesday’s closing price of Rs 982.
However, on Wednesday, the stock closed 2 per cent lower to Tuesday’s price of Rs 960. Sources said the demand for shares were strong with more than two dozen investors participating. Axis Capital, Bank of America Merrill Lynch, CLSA and Kotak were the book-runners to the issue.
In a QIP, a listed company sells equity shares, fully and partly convertible debentures, or any securities other than warrants that are convertible into stocks, to a qualified institutional buyer.