Mumbai-headquartered Godrej Properties, the realty business arm of Diversified Godrej Group, plans to enter the capital markets with its initial public offering (IPO) by end-December.
The company has filed its draft red herring prospectus with Securities and Exchange Board of India (SEBI) for the purpose, which is subject to regulatory clearances and prevailing market conditions.
Godrej Properties was established in 1990 as a real estate development company within the Godrej Group of businesses. It has completed various projects in Mumbai and Pune. The firm is currently developing residential towers such as the Planet Godrej in central Mumbai and the Godrej Woodsman Estate in Bangalore.
The proceeds of the issue will be used to fuel Godrej Properties expansion, he said, adding that given the huge future potential of residential realty, the company would be needing more capital going forward.
ICICI Securities and Kotak Mahindra will manage the upcoming issue.