Godrej Properties raises Rs 3,750 crore through QIP
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Goldman Sachs Funds, Government of Singapore, Invesco Oppenheimer Developing Markets Fund and Monetary Authority of Singapore among key investors
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The company has raised these funds to drive consolidation through this additional capital and use it to significantly strengthen its development portfolio.
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MUMBAI: Godrej Properties, real estate development arm of the Godrej Group, has raised Rs 3,750 crore through a Qualified Institutional Placement (QIP) of 2.59 crore equity shares to global investors including Goldman Sachs Funds, Government of Singapore and Invesco Oppenheimer Developing Markets Fund.
Monetary Authority of Singapore, Universities Superannuation Scheme and Baron Emerging Markets Fund are also among the investors that have been allotted more than 5% equity shares offered in the issue.
With the economic recovery picking up pace and attractive home prices, analysts say it is a good time for investors to put in money in stocks of real estate companies. Those who have spare funds and are looking to invest, buying a residential property now can is also be a good option from a long-term perspective. However, the return expectation of investors from these two asset classes should be realistic, especially from the stock market perspective, given the sharp run up in these counters since their March 2020 low. Over the past two years, residential real estate has been primarily driven by end-users. According to ANAROCK Property Consultants, investors accounted for just about 20 per cent of the overall buying activity. Over the years, implementation of the Real Estate (Regulation and Development) Act implemented in 2016 combined with other shocks such as demonetisation, the introduction of GST and now Covid-19, has led to a consolidation in this sector.
BUY COLPAL | TARGET: Rs 1,730 | STOP LOSS: Rs 1,595 The stock is making a higher top and higher bottom formation and is trading in a rising channel on the daily chart. It has provided a breakout from a rounding bottom formation and has scaled to a fresh new high. The volume was higher than average which supports the price action and we can expect the upside momentum to continue. The MACD has provided a fresh buy crossover on the daily chart above the zero line. The stock also witnessed a built-up of long positions with the addition of 15 per cent open interest.
Shares of real estate companies were in focus, surging by up to 7 per cent, on the BSE in the early morning trade on Thursday after the Maharashtra government on Wednesday slashed premiums and levies charged on construction by 50 per cent till December 31 2021. The move is expected to give a boost to the real estate sector in the state. Following the development, shares of Sobha, Indiabulls Real Estate, Sunteck Realty, Oberoi Realty and Godrej Properties rallied between 5 per cent and 7 per cent on the BSE in the intra-day trade. At 09:27 am, the S&P BSE Realty index, the top gainer among sectoral indices, was up 2.8 per cent as compared to a 0.57-per cent rise in the S&P BSE Sensex. The realty index hit 52-week high of 2,607 in the intra-day trade today.