Godrej Properties Shares Climb over 8.5% to Hit Record High
The QIP committee of the board of directors, at its meeting held on Saturday, approved the issue and allotment of over 2.26 crore equity shares to eligible qualified institutional buyers at the issue price of Rs 928 per share, said Godrej Properties.
Godrej Properties Logo (www.godrejproperties.com)
Godrej Properties Ltd shares climbed over 8.5% in intraday trade on Monday to hit record highs after the company said over the weekend that it has raised Rs 2,100 crore by issuing equity shares to qualified institutional buyers (QIBs).
The QIP (qualified institutional placement) committee of the board of directors, at its meeting held on Saturday, approved the issue and allotment of over 2.26 crore equity shares to eligible qualified institutional buyers at the issue price of Rs 928 per share, said Godrej Properties.
“Pursuant to the allotment of equity shares in the issue, the paid-up equity share capital of the company stands increased from Rs 114.69 crore consisting of 22.93 crore shares to Rs 126.01 consisting of 25.2 crore shares,” it added.
The QIP issue had opened on 25 June and closed on 28 June 2019. Godrej Properties proposed to use the funds from the issue to invest in its subsidiaries and joint ventures to meet the funding requirements for existing and new development projects and debt repayment.
At 2:59pm, shares of Godrej Properties were trading at Rs 1,077.40, up 7.8%, on BSE.
Meanwhile, shares of other realty companies also jumped in trade on Monday. The BSE Realty sector was trading higher by 2% in afternoon trade. Among specific stocks, Sunteck Realty Ltd jumped 5%, Phoenix Ltd was trading higher by 2.6%, Oberoi Realty was up 2% and Indiabulls Real Estate Ltd rose 1.7%.
According to a recent research report by JP Morgan, the seven-year residential down cycle that started in 2011 has ended, as is evident from the rising sales and falling debt levels of the large real estate developers. The debt levels of listed players have gone down and their rising cash levels provide the scope for new launches.
Another report by Deutsche Bank states that the interest rate cycle is turning in favour of the real estate sector, and will support developers’ earnings outlook.
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