Becoming the first real estate firm to list in two years, shares of Godrej Properties debuted on bourses at around 5 per cent premium over its issue price of Rs 490. The scrip gained 20 per cent to Rs 586.7 per share before ending the day over 9 per cent up at Rs 534.5 per share.
Godrej Properties has listed over 6.98 crore shares on bourses raising around Rs 462 crore from the market. The company would be using the IPO proceeds to acquire land, construction of projects and repayment of loans.
The company currently focuses on residential, commercial and township developments. “We see strong demand for affordable homes in the country. We want to tap this opportunity,” said Adi Godrej Chairman of Godrej Group.
The positive market reaction to realty stock is sure to boost morale of nearly 16 realty firms looking to enter the primary market. Having suffered hugely during slowdown, realty firms are planning to make the most of improving economy and investor sentiments by entering primary market.