Godrej Prop FD scheme hit with public, raises Rs 220 cr

Tags: News
Godrej Properties is raising funds from the public through fixed deposits to repay a part of its high-cost debt. Overall, the company plans to raise Rs 300 crore through fixed deposits from shareholders and the public. Of this the sum, around Rs 220 crore has already been raised from the public.

“We are at the threshold of closing our fixed deposits for the public as we have almost reached its limit. But for shareholders we have not yet reached the limit and are still raising funds,” said a top official of Godrej Properties. Godrej Properties has raised the maximum permissible amount under the Companies Act — Rs 221.26 crore — from the public, while the remaining is being raised through shareholders.

The company offered 10.5 per cent interest rate for the general public who invest for a three-year term in the non-cumulative deposit scheme, compared with 10 per cent offered by Godrej & Boyce for senior citizens in its fixed deposit scheme

“The limits of the sum we can raise are revised every year based on the net worth and reserves of the company,” said the official.

He added that the company is eligible to raise 25 per cent of its net worth through fixed deposits. As of September 30, the company had net debt of Rs 1,600 crore. Typically, banks charge a higher interest rate for loans to realty companies. However, Godrej Properties benefits from the group image and relationship with bankers by way of easier access and preferential rates of interest.

Sandipan Pal, an analyst at Motilal Oswal Securities said, “The company is performing well as it has witnessed strong sales in its new projects and are also focusing on executing the projects at a faster pace. The company’s residential side is performing very well while the execution of commercial properties is slower due to lesser demand. The only thing one has to wait and see is, whether they are able to reduce their debt.”

Pal said that the company’s debt equity ratio at the moment is 1:1, and they probably plan to bring it down to less than that. Godrej Properties plans to launch a slew of projects in the second half of financial year 2012-2013 to tide the real estate slowdown.

The company plans to launch several projects and additional phases in locations like Gurgaon, Vikhroli, Chembur, Pune, Ahmedabad and Kolkata. It will also launch a commercial project at Bandra-Kurla Complex soon.

Godrej Properties’ net profit for the July-September grew 67.5 per cent compared with the year-ago period to Rs 32.58 crore, driven by strong residential sales. The company’s net sales for the quarter grew 58.7 per cent to Rs 207.31 crore against last year.

With projects across 12 cities in the country, the company’s upcoming development covers an area of 74 million square feet.


  • All the debates are glossing over the key question if children are eating healthy food

    For some time now, we have been strapped in noodle debates. First Maggie noodles and now our own swadeshi noodles that Baba Ramdev is making.


Stay informed on our latest news!


Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs


Amita Sharma

Smart cities for the smart citizens

The 21st century has been spoken of as the urban ...

Zehra Naqvi

Baby and you

Every person who’s had a chance to be a parent ...

Bubbles Sabharwal

Women of the world, unite for a change

Last week I attended the Women in the World forum ...


William D. Green

Chairman & CEO, Accenture