Mumbai-based real estate giant Godrej Properties on Wednesday (November 27) through an exchange filing announced that it has initiated a Qualified Institutional Placement (QIP) to raise funds for its growth and expansion. The QIP Placement Committee of the company's board approved the opening of the issue on November 27, 2024, during its meeting held today.

What Is the QIP About?

A Qualified Institutional Placement (QIP) allows companies to raise funds by issuing equity shares to institutional investors.

As per the BSE filing, Godrej Properties is offering equity shares at a floor price of Rs 2,727.44 per share, based on the pricing formula under SEBI's ICDR regulations.

The company also reserves the right to offer a discount of up to 5 per cent on this floor price.

"The Issue price will be determined by the Company in consultation with the book running lead manager appointed for the Issue," added the company in the regulatory filing.

The launch follows approvals from the company’s Board of Directors on October 1, 2024, and a shareholder special resolution passed on October 31, 2024.

How Will the Funds Be Used?

Godrej Properties plans to use the funds for various purposes, which includes:

- Issuing equity shares or convertible debentures.

- Funding growth initiatives through public or private offerings.

- Enhancing its capital structure with other permissible methods under the law.

As per the regulatory filing, the company added that the funds may be raised in one or more tranches through methods like rights issues, Further Public Offers (FPOs), or QIPs.

Debt Management

As of June 2024, Godrej Properties reported a net debt of Rs 7,432 crore, marking an increase from Rs 6,198 crore at the end of March 2024.

Stock Performance

Shares of Godrej Properties today ended the day 2.4 per cent lower at Rs 2,831.