Mumbai based Godrej Properties has opened its initial public offering (IPO) of 9,429,750 equity shares of Rs 10 each for subscription today. Its price band is at Rs 490-530 per share. The issue will close on December 11, 2009.

In an IPO press conference, the company said would use 30% of IPO funds to repay debt.

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.

It is in the business of real estate development in India. It currently has real estate development projects in 10 cities in India, which are at various stages of development.

The proceeds of the issue will be used for acquisition of land development rights for forthcoming projects; construction of forthcoming project and repayment of loans.

The company has land reserves of 391.04 acres, developable area of 82.74 million sqft and saleable area of 50.21 million sqft (including 27 million sqft in Ahmedabad).

The equity shares are proposed to be listed on the BSE and NSE. For the year ended March 31, 2009, the company reported profit after tax of Rs 74.74 crore on total income of Rs 188.13 crore. As on June 30, 2009, it has debt of Rs 745.78 crore on its books.

Global Co-ordinators and book running lead managers to the issue are ICICI Securities Limited, Kotak Mahindra Capital Company Limited, IDFC – SSKI Limited and Nomura Financial Advisory And Securities (India) Private Limited. Karvy Computershare Private Limited is the registrar.

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