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December 10, 2007

Profile of Godrej Properties

Business Today has an article on the Godrej Group's property business, which is to launch an IPO shortly.
As of September, GPL had projects—in progress and signed—on close to 200 acres of land. Some of them are joint developments, involving other developers, whilst a few are wholly-owned by GPL. Going by the property prices prevailing in the various locations where these projects are being executed—in areas in Mumbai, Pune, Bangalore, Kolkata and Hyderabad—Godrej’s share is estimated to be worth a little under Rs 4,000 crore.

...It’s the sheer scale of the potential that’s locked within the group that has investors licking their chops in anticipation of GPL’s public offering (which is slated for March 2008; GPL is expected to raise a little under Rs 1,000 crore by issuing 10 per cent of fresh equity). Analysts currently value the company at 3,500-4,000 crore, based on current operations. But that is the proverbial tip of the iceberg that is GPL. As Korde points out: “Today, we don’t have access to the land available with the group (in Vikhroli). However, as when the group plans to develop that land, that land will come under GPL.” Company officials point out that the land in Vikhroli is equally owned by Adi Godrej and cousin Jamshyd.

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of information and networking services to the private equity and venture capital ecosystem in India. View free samples of Venture Intelligence newsletters and reports.