Godrej Properties attracts 9% premium

Settles at Rs 534.55 on BSE
Godrej Properties settled at Rs 534.55 on BSE, a premium of 9.10% over the initial public offer price of Rs 490.
The stock opened at Rs 510, a premium of 4.10% over the initial public offer (IPO) price. It hit a high of Rs 586.70 and a low of Rs 500. The counter clocked 52.60 lakh shares on the BSE.
The current share price of Rs 534.55, discounts the company's half-year ended September 2009 annualised consolidated EPS of Rs 13.7 by a PE multiple of 38.01.
Godrej Properties had fixed the issue price at Rs 490 per share, at the lower end of the Rs 490-530 price band. The company had mopped nearly Rs 500 crore from the initial public offer (IPO) which remained open for subscription between 9 December and 11 December 2009. The Godrej Properties IPO was oversubscribed 4 times and received bids for 3.09 crore shares as against 77.32 lakh shares on offer.
The qualified institutional buyers (QIBs) category was oversubscribed by 7.44 times. However, the retail investors category and non institutional investors category, made up of corporates and high net worth individuals, both remained undersubscribed. The non institutional investors category was subscribed just 0.40 times and the retail investors category was subscribed only 0.37 times.
The issue constituted 13.5% of the post issue paid-up capital of the company.
On 8 November 2009, Godrej Properties raised Rs 89.95 crore by selling 16.97 lakh shares at Rs 530 each to four anchor investors - JF India Fund, JF Eastern Smaller Companies Fund, Ward Ferry Management and The Royal Bank of Scotland Plc.
Godrej Properties is in the business of real estate development. It currently has real estate development projects in 10 cities in India, which are at various stages of development.
The Mumbai-based firm plans to use the IPO proceeds for acquisition of land development rights, construction of forthcoming projects and repayment of loans.
In 2008, the company had planned to come out with the IPO but shelved it due to volatile market conditions in the wake of the global slowdown
The company's consolidated net profit rose marginally by 0.81% to Rs 75.63 crore on 9.75% fall in consolidated net sales of Rs 205.26 crore in the year ended March 2009 over the year ended March 2008.