Godrej Properties secures record Rs 6,000cr in historic QIP milestone

Godrej Properties Limited, a leading name in sustainable real estate development in India, has achieved a historic milestone by raising INR 6,000 crore through a Qualified Institutional Placement (QIP). This achievement represents the largest real estate QIP in the country’s history, reaffirming the company’s robust growth trajectory and strong financial foundation.

The record-breaking fundraising effort attracted significant interest from both domestic international investors, with demand nearly four times the QIP size. Notable participants included GIC, BlackRock, Aberdeen, Norges Bank, SBI Pension, and ICICI Prudential Life Insurance. With this infusion, Godrej Properties Limited saw a remarkable 50% surge in net worth, while its equity dilution was limited to 7.68%. Furthermore, the company’s net-debt-to-equity ratio dramatically improved, moving to a financially strong position of below 0.2:1 from 0.7:1 as of September 2024.

Strategic Growth Plans and Sustainability

The capital raised will support growth capital utilisation, with Godrej Properties Limited planning to expand its project pipeline to sustain its leadership in the sustainable real estate sector. Executive Chairperson Pirojsha Godrej highlighted the company’s commitment to scaling operations while maintaining financial discipline. He noted that this step reinforces the confidence of domestic international investors in the company’s ability to drive future growth.

With its aggressive project launches planned across seven cities in the third quarter and an even more robust schedule for the fourth quarter, the company is set to capitalise on its impressive booking value growth. Godrej Properties Limited achieved 56% growth in FY23, followed by an 84% increase in FY24, and an extraordinary 90% surge in the first half of FY25. These figures underline its position as the largest real estate developer in India by booking value.

Redefining Real Estate Through Innovation

Godrej Properties Limited is deeply rooted in the Godrej Group’s philosophy of innovation and excellence. It has been a pioneer in adopting sustainable real estate practices, with all its developments certified as green buildings. In recent years, the company has consistently ranked as a global leader in real estate sustainability benchmarks.

The funds raised through this Qualified Institutional Placement are expected to further bolster the company’s efforts to maintain its leadership in sustainable real estate development. Additionally, Godrej Properties Limited continues to build on its legacy by delivering innovative projects while ensuring robust financially strong positions in the market.

The Road Ahead

With the largest-ever QIP for the largest real estate developer in India, Godrej Properties Limited is poised to maintain its dominance in the sector. Leveraging this record-breaking fundraising effort, the company will focus on growth capital utilisation to enhance its portfolio, achieve margin expansion, and gain further market share.

As the fastest-growing business across all sectors in FY24, Godrej Properties Limited is redefining Indian real estate, emphasising sustainable development and innovative practices. By achieving exceptional booking value growth, the company reinforces its commitment to delivering value to both investors and homebuyers.