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In a recent development, Godrej Properties has announced that it has raised a substantial sum of Rs 1,160 crore through the issuance of non-convertible debentures (NCDs) on a private placement basis. This significant financial move underscores the company's commitment to strengthening its financial position and supporting its ambitious growth plans in the real estate sector.
The board of directors of Godrej Properties authorized the allotment of two series of NCDs to facilitate this fundraising initiative. Series I of the NCDs consists of 1,00,000 rated listed unsecured redeemable NCDs, each with a face value of Rs. 1 lakh. This series, which totals Rs. 1,000 crore, is a substantial part of the fundraising effort. Complementing this, Series II includes 16,000 rated listed unsecured redeemable NCDs, each with a face value of Rs. 1 lakh, aggregating to Rs. 160 crore.
These NCDs have been offered to identified investors through a private placement basis. Notably, they come with fixed coupon rates and distinct maturity dates to cater to the preferences of different investors.
In further detail, the Rs. 1,000 crore NCDs in Series I are divided into two parts: the base issue and the green shoe option. The base issue comprises 40,000 rated listed unsecured redeemable NCDs, each with a face value of Rs. 1 lakh, adding up to Rs. 400 crore. Meanwhile, the green shoe option encompasses 60,000 rated listed unsecured redeemable NCDs, also with a face value of Rs. 1 lakh each, resulting in a total of Rs. 600 crore. These NCDs, which have a fixed coupon rate of 8.3% per annum, are set to mature on March 19, 2027.
Moving on to Series II, the Rs. 160 crore NCDs are similarly divided into the base issue and the green shoe option. The base issue consists of 10,000 rated listed unsecured redeemable NCDs, each with a face value of Rs. 1 lakh, totalling Rs. 100 crore. The green shoe option, on the other hand, includes 40,000 rated listed unsecured redeemable NCDs, again with a face value of Rs. 1 lakh each, resulting in a total of Rs. 400 crore. These NCDs have a fixed coupon rate of 8.5% per annum and are set to mature on September 20, 2028.
One of the noteworthy aspects of this financial development is the credit ratings assigned to the NCDs. ICRA, a prominent credit rating agency, has accorded the NCDs with an (ICRA] AA+ (Stable) rating, indicating a strong degree of creditworthiness and stability. Additionally, India Ratings has provided these NCDs with IND AA+/Stable ratings, further emphasizing their credit quality and reliability.
Godrej Properties, a subsidiary of the Godrej Group, is one of India's leading real estate developers. The company has established a strong presence in the real estate market through its commitment to quality, innovation, and sustainability. With a focus on delivering exceptional living spaces, commercial complexes, and integrated townships, Godrej Properties has garnered recognition for its customer-centric approach and dedication to excellence.
Godrej Properties' achievement in raising Rs 1,160 crore through the issuance of NCDs on a private placement basis is a testament to its financial strength, market reputation, and growth-oriented approach. This capital infusion will enable the company to further expand its presence in the dynamic Indian real estate sector and contribute to the development of innovative and sustainable real estate projects across the country.
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