Godrej Properties, the real estate development division of Godrej Group, has announced its plan to raise Rs 700 crore through rights issue.

Pirojsha Godrej, managing director & chief executive of Godrej Properties, said that the issue had already been approved by the company's board, and that the funds would be used to finance the company's existing and new projects.

Speaking on the topic, Mr. Pirojsha added, "This issue will allow us to create necessary funding, thereby growing the portfolio very rapidly without requiring in any way to stretch our balance sheet."

In the January to March quarter, the company's revenues slipped 16 per cent to Rs 313.9 crore; while operating profit dropped 1.56 per cent to Rs 100.4 crore. However, net profit jumped 33.66 per cent to Rs 53.2 crore.

EBITDA increased 43 per cent, despite relative underperformance of the real estate sector and overall poor macro economic environment. In terms of bookings, the company surpassed $500 million in new sales.

The company also claimed that it enjoyed good traction in major target markets of NCR-Gurgaon, Platinum at Vikhroli in Mumbai and Bangalore this financial year. At E City Bangalore, the company sold nearly
400,000 square feet during the year; while at Gurgaon, it sold nearly 1 million square feet in a single day.

Godrej Properties expects the planned rights issue to be wrapped up by the month of September this year.