Godrej Properties successfully raises ₹1,160 Cr via NCDs in private placement

Godrej Capital targets ₹50,000 Cr AUM by 2028

Mumbai, September 20, 2023 – Leading real estate firm, Godrej Properties, announced a significant financial milestone today as it successfully raised Rs 1,160 crore through the issuance of non-convertible debentures (NCDs) via a private placement.

The company, in a regulatory disclosure, revealed that the allotment committee of the Board of Directors has given its approval for the issuance of these NCDs. In total, Godrej Properties has allotted one lakh rated listed unsecured redeemable NCDs, each with a face value of Rs 1,00,000, amounting to a grand total of Rs 1,000 crore. These NCDs, part of Series I, are set to mature on March 19, 2027, and carry an attractive coupon rate of 8.3 percent. Additionally, the company has also allocated 16,000 NCDs with a face value of Rs 1 lakh each, totaling Rs 160 crore, as part of Series II. These NCDs are slated to mature on September 20, 2028, offering a competitive coupon rate of 8.5 percent. It’s important to note that the interest on all NCDs will be disbursed annually.

This move follows the company’s enabling approval in August to raise funds by issuing NCDs, bonds, and other debt securities on a private placement basis, with a maximum cap of Rs 2,000 crore.

Godrej Properties, an affiliate of the renowned business conglomerate, Godrej Industries, has established itself as one of the premier real estate developers in the country. The company primarily focuses its development efforts in key markets, including the Delhi-NCR region, Mumbai Metropolitan Region, Bengaluru, and Pune, where it consistently delivers high-quality residential projects.

For the current fiscal year, Godrej Properties anticipates a robust 14 percent growth in sale bookings, aiming to reach an unprecedented figure of Rs 14,000 crore, driven by strong demand in the housing sector. In the June quarter, the company achieved an impressive nearly three-fold increase in consolidated net profit, reporting Rs 124.94 crore compared to Rs 45.55 crore in the same period last year. Total income for the quarter surged to Rs 1,265.98 crore, up from Rs 426.40 crore in the corresponding period the previous year, as per regulatory filings.

On the operational front, the sales bookings for Godrej Properties experienced a marginal 11 percent decline, amounting to Rs 2,254 crore during the quarter, down from Rs 2,520 crore in the year-ago period. In terms of volumes, sale bookings decreased by 20 percent, falling from 2.83 million sq ft to 2.25 million sq ft. Nevertheless, the company proudly delivered a substantial 4.9 million square feet of area during the June quarter, demonstrating its commitment to fulfilling its development promises.

About Godrej Properties:

Godrej Properties Limited, headquartered in Mumbai, India, is a prominent real estate firm. Founded in 1990 under the visionary leadership of Adi Godrej, it operates as a subsidiary of Godrej Industries Ltd. At present, the company is actively engaged in various development projects, collectively spanning over an estimated 89.7 million square feet.

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