Godrej IPO on hold…
- The Godrej group is putting on hold the plan by Godrej Properties to raise Rs 600 crore through an initial public offering. The plan, to offload a 13.5 per cent stake in the real estate company, is being postponed till the IPO market shows signs of revival.
- A pre-IPO placement of around 2.44 crore shares too has been put off. The placement would have been almost a quarter of the size of the proposed IPO.
- The company had proposed to use Rs 355 crore from the IPO proceeds for acquisition of development rights for its forthcoming projects in Ahmedabad and Greater Noida, Rs 75 crore for construction of proposed projects in Chandigarh and Rs 150 crore for repaying loans, according to the draft red herring prospectus filed by the company with the capital markets regulator.
- “At this point of time we are quite hesitant to enter new cities, for example. But we are still interested in attractive land parcels in places such as Mumbai where we feel long term potential for development is quite strong,” said Godrej.
- The company has also decided to cut prices for the projects it expects to launch over the next six months or so. “In the next three months we will announce big projects that will be primarily focused on affordable housing in the cities such as Ahmedabad and Kolkata. We are also researching low cost housing as a concept,” Godrej added. So far the company was focused on developing premium apartments such as its landmark 48 storey residential tower project in central Mumbai.
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