Godrej Properties share surges 2.4% on ₹6,000 cr QIP launch – key details

Shares of residential and commercial projects developer Godrej Properties rose 2.5% to ₹2,901.05 in early trade on the BSE on Thursday after the company launched ₹6,000 crore QIP or qualified institutional placement. Godrej Properties has launched its QIP to raise ₹6,000 crore from institutional investors. The QIP plan was approved during the Godrej board's meeting on October 1, 2024.

In a regulatory filing, Godrej Properties said the QIP Placement Committee approved and adopted the floor price at ₹2,727.44 per equity share. The company said it may offer a discount of not more than 5% on the floor price for the issue.

Godrej Properties (GPL) achieved its "best ever" second-quarter bookings of ₹5,200 crore, guided by strong demand momentum (up 3% YoY). New launches and existing projects accounted for 53% and 47% of total sales, respectively.

The Mumbai-based company's revenue surged 219% YoY to ₹1,090 crore, while the gross margin came in at 44%. Despite that, higher other expenses due to the launches limited the operating profit to ₹31.9 crore, while PA jumped 4x to ₹330 crore due to higher other income of ₹250 crore.

For H1 FY25, the company clocked revenue of ₹1,830 crore, up 43%, backed by the delivery of 9.3 m.s.f. GPL reduced its operating loss to ₹93.1 crore and reported 313% YoY growth in PAT to ₹850 crore.

The company spent ₹1,680 crore on new land investments and approvals in H1, which resulted in a cash shortfall of ₹140 crore and an increase in net debt to ₹7,570 crore.

"We believe GPL will continue to surprise on growth, cash flows, and margins, given its strong pipeline and healthy realisations, which have been the key investor concerns. We maintain our BUY rating with a TP of INR3,725, implying 26% potential upside," brokerage major Motilal Oswal had said in its H1FY25 commentary on the stock.

Godrej Properties has a significant presence across Delhi-NCR, Mumbai Metropolitan Region, Pune and Bengaluru.