Sunday, June 10, 2007

Godrej to raise Rs 400-600-cr through IPO

New Delhi: India’s premier conglomerate Godrej group’s real estate arm is ready to float on initial public offer to fetch Rs 400-600-crore for fueling its expansion plans.

Godrej Properties, which is presently developing 2-crore sq.ft of real estate space across the country, will go for an IPO to offload 10 per cent of its equity.

"We will be offloading 10 per cent in the second-half of this fiscal. Currently, Godrej Industries owns 82 per cent stake while the family, 18 per cent in the company," Godrej Group Chairman, Adi Godrej, told PTI.

With the offloading, Godrej Industries' holding will come down to 75 per cent and the family's to around 15 per cent, Godrej said, adding that merchant bankers would be appointed shortly.

"We are in discussions with 3-4 of them and a decision will be taken very soon," he said, without revealing their identities.

While Godrej declined to reveal the issue size, saying "it is too early to talk about this", industry sources say the issue could be anywhere between Rs 400 and Rs 600-crore.

While not totally ruling out any pre-equity placements, Godrej, however, said that it was not on the radar presently.

Elaborating on the company's expansion plans, Godrej said property development would be a thrust area for the group and in five years Godrej Properties could emerge as the largest player within the group.

http://www.ibnlive.com/news/godrej-to-raise-rs-400600cr-through-ipo/42618-16.html

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