Godrej Properties fixes IPO price band at Rs 490-530

Godrej Properties has fixed a price band of Rs 490-530 per equity share for its initial public offer, which is scheduled to open for subscription on December 9.

Based on calculations, at the upper end of the price-band the company is planning to raise nearly Rs 500 crore, through its initial public offer (IPO).

The IPO committee of Godrej Properties has approved the price band of the issue between Rs 490 and Rs 530 per share, Godrej Industries said in a filing to the Bombay Stock Exchange.

The real estate company is planning to enter the primary market with an issue size of 94.29 lakh equity shares that will constitute 13.5 per cent of the post issue paid-up capital of the company.

Godrej Properties, promoted by Godrej Industries and Godrej & Boyce Manufacturing Company, plans to use Rs 203 crore for acquiring land for its forthcoming projects and spends Rs 172 crore for loan repayment.

Besides, Rs 75 crore would be used for construction of its forthcoming projects in three years time.

Last year, the company had planned to come out with the IPO but shelved it owing to volatile market conditions in the wake of the global slowdown.

ICICI Securities, Kotak Mahindra Capital are acting as the global coordinators and book running lead managers, while IDFC-SSKI and Nomura Financial Advisory and Securities (India) are the book running lead managers to the issue.