Through the issuance of NCDs on a private placement basis, Godrej Properties raises Rs 1,160 crore

21 Sep 2023 , 11:54 AM

Godrej Properties, a real estate company, announced on Wednesday that it has collected Rs 1,160 crore through the private offering of non-convertible debentures. The business stated in a regulatory filing that the Board of Directors’ allocation committee had given its approval for the distribution of the Non-Convertible Debentures (NCDs).

According to Godrej Properties, the business has issued one lakh rated listed unsecured redeemable NCDs with a face value of Rs 1,00,000 each, totalling Rs 1,000 crore

These series I NCDs have a March 19, 2027, maturity date and an 8.3% coupon rate.

It has also distributed 16,000 NCDs with a face value of Rs 1 lakh apiece, totalling Rs 160 crore. The Series II NCDs in question have a maturity date of September 20, 2028, and their coupon rate is 8.5%.

Each year, interest will be paid on all NCDs.

The board had granted permission in August to raise money through the private placement of NCDs, bonds, and/or other debt securities in one or more tranches for a maximum of Rs 2,000 crore.

One of the top real estate developers in the nation, Godrej Properties, a division of the corporate behemoth Godrej Industries. For the development of residential developments, it primarily concentrates on the Delhi-NCR, Mumbai Metropolitan Region, Bengaluru, and Pune markets.

On the strength of the housing market, the business anticipates a 14% increase in sale bookings this year to a record Rs 14,000 crore.

In the June quarter, Godrej Properties’ consolidated net profit increased by nearly three times, to Rs 124.94 crore from Rs 45.55 crore the same quarter the previous year.

According to a regulatory filing, total revenue for the quarter increased to Rs 1,265.98 crore from Rs 426.40 crore during the same time last year.

The operational sales bookings for Godrej Properties decreased 11% to Rs 2,254 crore in the quarter from Rs 2,520 crore in the corresponding quarter last year. Volume-wise, sale bookings decreased 20% to 2.25 million square feet from 2.83 million square feet.

In the June quarter, the company provided 4.9 million square feet of space.

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