Godrej Properties raises Rs 700 cr via rights issue

Realty firm Godrej Properties today said it has raised Rs 700 crore by selling fresh shares to existing shareholders through a rights issue.
    
The proceeds of the rights issue would be utilised for adding new projects and reducing debt.
    
In a filing with the BSE, Godrej Properties said the Rights Issue Committee of the board has allotted 21,538,388 shares at Rs 325 per share to the successful applicants.
    

Godrej Properties -- the realty arm of Godrej Group, had said last week that its Rs 700 crore rights issue has been fully subscribed.
    

The company had offered 21,538,388 equity shares of face value of Rs 10 each at a price of Rs 325 per equity share on a rights basis to the existing shareholders. Promoters hold 74.98% stake in the company.
    
This is the third capital market fund raising exercise by Godrej Properties.
    
The company had launched its Initial Public Offer (IPO) in December 2009 and successfully conducted India's first ever Institutional Placement Programme (IPP) in March 2012.
    
"We are very happy to successfully close the subscription to our rights issue. I'd like to thank all our shareholders for demonstrating such a tremendous confidence and faith in the growth prospects of our company.

    
"We believe the funds generated will strengthen our financial position and our ability to continue to add projects across India," Godrej Properties Managing Director & CEO Pirojsha Godrej had said.
    
Godrej Properties is currently developing residential, commercial and township projects spread across approximately 85 million square feet in 12 cities.