Godrej Properties mulls pre-IPO placement of 4% stake
Press Trust of India / New Delhi Oct 29, 2009, 17:06 IST
Godrej Properties Ltd, which has geared up for a maiden public offer, is considering to sell about four per cent stake in the company to private parties before the issue.
The company, which has already filed draft papers with the market regulator (SEBI) for its proposed initial public offer (IPO), is mulling a pre-placement of up to 24.44 lakh shares with certain investors.
"The company is considering a pre-IPO placement of up to 24.44 lakh equity shares with certain investors. The pre-IPO placement is at the discretion of the company," according to the details available with the draft red herring prospectus (DRHP) of Godrej Properties.
The real estate developer is planning to hit the primary market with an issue size of 94.29 lakh shares.
While the company has not disclosed how much fund it plans to raise from the IPO, it aims to use Rs 203 crore for acquiring land for its forthcoming projects. Besides, it also intends to spend Rs 172 crore for the repayment of loans.
Besides, Rs 75 crore would be used for the construction of the realty firm's forthcoming projects in three years time.
Last year, the company had filed a DRHP but did not go ahead with the IPO due to volatile market conditions in the wake of global slowdown.
The company is promoted by Godrej & Boyce Manufacturing Company Ltd and Godrej Industries Ltd.
Federation of Edenwoods Housing Societies Ltd., Thane, where Godrej Properties Ltd.(GPL) Constructed a Housing Complex, have filed a legal case against GPL for breach of Consent Decree of 30th April, 2005. Honourable Thane Court have passed an order, inter alia, that GPL cannot sell / create third party rights on suit property. Case No. is 308/ 2009. In their Draft Red Herring Prospectus filed with SEBI, various legal cases against GPL are disclosed.
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