Godrej Properties IPO to hit the market soon

It has been learnt that Godrej Properties Ltd (GPL), the well-known real estate arm of the Godrej group, is going to surface with its initial public offering (IPO) in the next ten months. Well, there were conjectures in this regard and now, it seems that everything is coming true.

Godrej Properties is one of the leading real estate development companies in India and focuses on residential, commercial and township developments. It also adheres to a simple philosophy: providing exemplary service based on the optimal use of available resources. The company has completed projects in Mumbai and Pune and is currently developing residential towers such as the Planet Godrej in central Mumbai and the Godrej Woodsman Estate in Bangalore.

Let’s focus on the official statement of Godrej Properties Ltd (GPL) then. Though there have been no such, recently Godrej Industries’ Chairman, Adi Godrej, indicated the same in a meeting with shareholders. He said, “We have filed our Draft Red Herring Prospectus and obtained an approval from the Securities and Exchange Board of India (SEBI) in early June to raise funds through an IPO. The permission is valid for 12 months and we still have 10 months for the IPO. Market conditions are conducive and we plan to come out with our IPO in this period.”

The fund will go entirely into Godrej Properties and their will be no sale of shares by Godrej Industries. “It will be new capital going into Godrej Properties. We have permission to do 10 per cent to the public which is the minimum required and 3.5 per cent pre-IPO,” Godrej said.

Godrej Industries at this time holds an 80.3 per cent equity in Godrej Properties Ltd. The final valuation will be decided a couple of days before the IPO based on the advise of investment bankers, he said.