Godrej Properties board to meet on October 1 to consider raising funds; shares down

Godrej Properties, a major player in India's real estate sector, has announced plans to explore fundraising options. The company's board of directors is scheduled to convene on October 1 to discuss potential fundraising strategies.

According to a regulatory filing, the board will evaluate various fundraising methods, including issuing equity shares and other eligible securities. The company is considering multiple avenues including public offerings, private placements, and rights issues.

Godrej Properties share price was trading in the red, down 1.75 per cent, at ₹3,269.30, on September 26 at 1:06 pm on the BSE. Godrej Properties has a market capitalisation of ₹90,906.85 crore, as per NSE. Godrej Properties stock price hit its 52-week high on July 16, 2024 at ₹3,402.70, according to NSE data.

While the exact amount to be raised remains undisclosed, the move follows Godrej Properties' impressive performance in the previous fiscal year. The company reported a substantial 84 per cent increase in sales bookings, reaching a record ₹22,527 crore in 2023-24.

Godrej Properties has established a strong presence in key markets across India, including Delhi-NCR, Mumbai Metropolitan Region, Pune, and Bengaluru. Recently, the company expanded its operations to Hyderabad.

The first quarter of the current fiscal year has already shown promising results, with sales bookings soaring to ₹8,637 crore, nearly quadrupling from ₹2,254 crore in the same period last year. The company has set an ambitious target of ₹27,000 crore in sales bookings for the current fiscal year.

Godrej Properties' stock has experienced significant growth over the past year, more than doubling in value. Since the beginning of the year, the stock has surged by over 62 per cent, bringing the company's market capitalisation close to ₹91,000 crore. This performance has notably surpassed the NSE Nifty 50 index, which has seen a 33 per cent increase over the past year and a 20 per cent rise since January.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.