By 04 December, 2009

Godrej Properties Ltd, a unit of Godrej Industries Ltd, may raise up to 4.98 billion rupees on the upper end of the price band for its 9.4-million-share public issue, the parent said on Friday.

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The price band for the offering has been fixed at 490-530 rupees a share, Godrej Properties said in a statement to the BSE. The issue opens on Dec. 9 and ends on Dec. 11, according to a newspaper advertisement on Thursday.

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The funds will be used for new projects, debt repayment and for joint development projects, Godrej group chairman Adi Godrej said at a briefing. About 2.03 billion rupees will be used for land acquisition, 750 million rupees for construction and 1.72 billion rupees to cut debt.

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The issue will constitute 13.5 percent of the company's post-issue capital, with at least 60 percent of this reserved for institutional buyers and a minimum of 30 percent set aside for retail investors. A minimum of 10 percent is reserved for non- institutional buyers.

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ICICI Securities, Kotak, IDFC-SSKI and Nomura will manage the issue.

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