Godrej Properties closes Rs. 700 crores rights issue

The Mumbai-based real estate developer Godrej Properties Ltd's rights issue has witnessed demand in excess of the maximum amount it sought to raise based on reports from the Registrar to the Issue.

Godrej Properties Limited (GPL) (BSE scrip id: GODREJPRP) closed subscription to its rights issue on September 11, 2013. Based on reports from the Registrar to the Issue, the company has received full subscription to its rights issue. The final confirmation and allotment process will be carried out over the next few days. Kotak Mahindra Capital Company Limited was the sole Lead Manager to the Issue.

GPL had offered 21,538,388 equity shares of face value of Rs. 10/- each at a price of Rs. 325/- per equity share for an amount aggregating to Rs. 700 crores on a rights basis to the existing shareholders.

This was the third capital market fund raising exercise by Godrej Properties. GPL had its Initial Public Offer (IPO) in December 2009 and successfully conducted India's first ever Institutional Placement Program (IPP) in March 2012.

Mr. Pirojsha Godrej, Managing Director & CEO, Godrej Properties said "We are very happy to successfully close the subscription to our rights issue. I'd like to thank all our shareholders for demonstrating such tremendous confidence and faith in the growth prospects of our company. We believe that the funds generated will strengthen our financial position and our ability to continue to add projects across India."

Shares of Godrej Properties Ltd was last trading in BSE at Rs.386.05, down by Rs.1.20 or 0.31%. The stock hit an intraday high of Rs.395 and low of Rs.385.

The total traded quantity was 5728 compared to 2 week average of 5076.

Source : Equity Bulls

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