Shares of Godrej Properties today gained over 6 percent on the bourses after the company's issue of shares to institutional buyers was oversubscribed.
At the BSE, the scrip ended the day with a gain of 6.65 percent at Rs 660.60. During the day, the stock jumped 7.84 percent to Rs 668. On the NSE, the stock ended at Rs 655.20, up 5.68 percent.
Yesterday Godrej Properties' issue of shares to institutional buyers closed with 17 per cent more bids than the 74.42 lakh shares on offer (excluding gree-shoe option). The company is looking to raise about Rs 475 crore that would be utilised to cut debt and acquire realty projects. According to data available on the BSE, Godrej Properties received bids for 86,96,153 shares. The price band for the offer was Rs 575-620.
The company intends to use the net proceeds to reduce its current debt of about Rs 2,000 crore, acquisition of land development rights and general corporate purposes.
In an interview to CNBC-TV18, Pirojsha Godrej, executive director of Godrej Properties said the funds will be used to fund growth of the company. "We successfully concluded the first IPP in India yesterday. At the lower end of the price band, which is at Rs 575 per share, we will be raising about Rs 470 crore," he said.