Godrej Properties could look at dilution of promoters’ holding in the company in the next six months. The promoters’ stake in the real estate firm, part of the Godrej Group, stands at 83.79%, as of June 30, as per data on the Bombay Stock Exchange. Securities and Exchange Board of India (SEBI) norms prohibit promoters holding in a listed company to exceed 75%.
“My expectation is that it is quite likely there could be a (stake) dilution in the next six months. It will be to get funds into the company,” Pirojsha Godrej, Executive Director, Godrej Properties told newspersons.
“At the very latest, by June 2013, we will have to do some entity level fund raising. It’s likely to be considerably before that.” He refused to divulge details on the quantum of funds to be raised. Godrej said there was no pressing need for cash, but said as projects get launched, there will be requirement for funds to fuel growth of the company.
“The exact timing will depend on how successful we are in adding new projects,” he added. He said there are 10-12 projects at present under construction and the company could add another 5-6 projects during the financial year. “We see a lot of opportunities for new deals, so that will be one of the key goals for this year,” he added.
Among new launches, a premium residential tower on way to the airport in Bangalore would be launched by the company next month. It will have about 200 units, each unit being of 2,000-3,000 square feet, said Godrej. Though the company is yet to finalise the pricing, it will be in the range of Rs 6,000-Rs 7,000 per square foot, he said. The company is also hoping to launch two projects in Chembur in Mumbai later in the year.
Chennai, Mangalore and Hyderabad are also on the company’s radar. Projects are at present going on in Ahmedabad, Kolkata, Gurgaon and Bangalore. The company also has small sized projects in Thane and Kalyan in suburban Mumbai. On the commercial side, Godrej Properties has plans for two IT projects in Kolkata and the company is doing a commercial project in Chandigarh too.
