Godrej properties and Oberoi construction to come up with IPOs
September 11, 2009
Godrej properties, a subsidiary of the Godrej group and real estate firm Oberoi Constructions are set to launch their Initial Public Offers (IPOs). While Godrej properties will launch the IPO in the coming three months, Oberoi Construction is planning it for the first quarter of the next calendar year.
Godrej properties will release an IPO with 10% new shares for the public and 3.5% as a pre-IPO. Mr Adi Godrej, chairman, Godrej group said on the sidelines of real estate conference organised by Confedaration of Indian Industry, “IPO will be raised in the next 3 months for various projects.”
Oberoi Construction is likely to come up with an IPO in the first quarter of the next calendar year. Vikas Oberoi, MD, Oberoi constructions says, “We are in a process of tapping the market and then coming up with the IPO.”
The Oberois are developing a 4 million sq mt property in Mumbai which will be completed by the end of this fiscal year. Confirming the same Mr Oberoi adds, “We will be mainly focussed in Mumbai. We clearly are opportunity centric in buying properties.”
Mr Oberoi further added, “We have reduced the price of our properties by 25% in May 2009 and earned $ 100 million of which $ 80 million was in cash last quarter.”
The pre-IPO will be for the investors in the company which will be listed and according to Mr Godrej “It will not be for private equity players.” The amount that the Godrej properties plans to raise is yet to be decided, Oberoi expects to raise Rs 1000 crore through the IPO.
He further added that, “There is a good interest from the investors for the IPO.” - Pallabika Ganguly & Amritha Pillay