Godrej Properties plans to invest Rs 3,200 cr in next 2 years
New Delhi: Godrej Properties Ltd (GPL) is planning to invest Rs 3,200 crore in the coming two years and launch a number of projects in this time frame.
The company already has about Rs 2,200 crore of cash and is also planning to raise Rs 1,000 crore through Non-Convertible Debentures (NCDs) and the whole amount will be invested by the company in the next two years.
Replying to an investor query recently that whether the cash the company has (Rs 2,200 crore) and the Rs 1,000 crore that it wants to raise will be invested in a year, Pirojsha Godrej, Executive Chairman, GPL said “Yes, in the next couple of years, that will be fully deployed”.
Although Pirojsha did not specify how the entire money will be invested, he has made it clear in recent days that it will launch a number of projects.
The company aims to increase its profits four-fold of the current levels in the coming three years and for that, it wants to sell sufficient number of properties in the projects that it launches and also construct most of them to recognize the revenues as profits.
However, the company will not be able to construct as much as it did last fiscal due to the corona pandemic and lockdown. To a query as to how much GPL will be able to deliver to customers in the current fiscal as compared to 5.3 million square feet that is constructed in the last fiscal, Pirojsha replied “It will definitely lower this year, because I think the way to look at it is, this year it's sort of like a half year, because we have basically lost six months. So I think we will just wait and see how quickly we can ramp things up before talking about that.”
As regards raising money, late last month the Committee of Directors that was constituted by the Board of the company gave its approval for the company to raise up to Rs 1,000 crore for issuance of up to 10,000 unsecured, rated, redeemable and listed NCDs. These NCDs will have a face value of Rs Ten Lakh each.