Godrej Properties is eyeing redevelopment projects in Mumbai suburbs this fiscal even as it is looking at raising money through equity dilution in next 18-24 months.
Adi Godrej, chairman, said, “At present the promoter holding is at 84% and going forward we need to raise further capital. We are open to qualified institutional placement and private equity at the parent level also.”
The company last year delivered 3.9 million square feet (msf) and booked 1.89 msf. Total income during the last fiscal was up 53% at Rs 456 crore.
It is at present executing projects with a margin of 25-30% and has 54 msf in ongoing development while a total 82 msf has been firmed up.
Godrej is also looking at residential project launch in Gurgaon and surrounding areas and is scouting land for it.
Milind Korde, managing director, Godrej Properties, said, “We are looking at NCR Gurgaon region. We will also launch two townships in Kalyan and Pune. The Kalyan one is extension of our old project for which we are acquiring over 100 acres and in Pune we are consolidating around 200 acres.”
The company will also launch projects in four new cities this fiscal — Kochi, Mangalore, Chennai and Hyderabad with a residential portfolio of 80%.
Though management did not disclose the area, it will launch 700 units in each project with an average size of 1100 square feet. The second phase of its most ambitious project, the Ahmedabad township project, will be launched in the first quarter. It has already sold 1.3 msf in the first phase. It wants to strengthen its presence in Mumbai, Bangalore and NCR.
Though the company did not disclose the amount paid for the land acquisition and joint development rights, analysts expect the debt to equity ratio of the company to go up significantly.
Godrej said, “The debt portion will go up but we will keep a check on what is the comfortable ratio for us. The present debt cost is 10.5% while debt to equity ratio is 0.54.” The company’snet profit rose by 64% at Rs 123 crore due to substantial increase in its other income through stake sale to private equity investors in various projects, which is close to Rs 182 crore.
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