Godrej Properties sets IPO price band at Rs 490-530 per share

To raise Rs 500 crore through the issue

Godrej Properties has fixed the price band for its initial public offering (IPO) of 94.29 lakh equity shares, at Rs 490-Rs 530 per share. The issue will open for subscription on 9 December 2009 and will close on 11 December 2009.

At the top end of the price band, the company would be able to raise around Rs 499.73 crore. The issue will constitute 13.5% of the post issue paid-up capital of the company. Parent company, Godrej Industries currently holds 80.26% of equity share capital in the company.

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 for forthcoming projects; construction of forthcoming project and repayment of loans.