Godrej Properties is planning to raise around R500 to R600 crore through the institutional placement (IPP) route .This move is aimed at diluting promoter stake in the company from the current 84% to 75%, as per Sebi guidelines Pirojsha Godrej, executive director, Godrej Properties said, ?Either by this quarter end or in the next quarter, we will be able to wrap up the fund raising. Apart from diluting promoters’s stake, the exercise will give us money for our future growth.?
Speaking on the sidelines of announcing the company’s foray into Chennai’s residential real estate market, Godrej said the Chennai market has been demand driven even when other markets, including Mumbai, reeled under uncertain times due to economic slow down.
?We will be consolidating our presence in our existing markets rather than launching two or three projects here and there,? he added.
Godrej Properties, the real estate arm of Godrej Group, is currently developing projects in 12 cities across India. The realty major on Friday announced the launch of its first residential project, Godrej Palm Grove, in Chennai at a project cost of R450 crore. Larsen & Toubro, India?s leading construction firm, will construct Godrej Palm Grove. Like most of GPL?s projects, Godrej Palm Grove is also a joint venture project. GPL has entered in to a development agreement with Addison & Co for this project. Pirojsha Godrej said that the company is also looking at affordable residential segment very seriously.
? We are studying the issue and if the government comes out with favourable policy instruments like FSI and tax concessions, we can make a good beginning? , he said, adding, ?Houses in the range of R5 lakh to R15 lakh can be considered affordable.? The real estate company is also looking at the option of increasingly getting into the redevelopment space. ?We are taking the redevelopment space very seriously as land parcels have become very costly. We will be taking up a couple of redevelopment projects in Mumbai first. As for the other metros like Chennai, we have to study the local laws first to take a final call in this regard?, he said.