The investment will be carried out at a share price of Rs 783.50, roughly equal to today’s opening price.
Shares of the company shot up to Rs 813.55 after the news was announced, and are currently trading at around Rs 810, up 3% from yesterday.
The company said it will hold an extra-ordinary general meeting on May 30 to seek shareholder approval for the transaction.
Godrej Properties is arguably India’s most active real estate player at present, having survived the severe slow-down that affected the sector in the last two years.
Unlike many other real estate companies that raise money from various sources, Godrej Properties has had the advantage of having a transparent investment and funding structure, which has helped it avoid the kind of severe liquidity crunch that hit many of its competitors.
India went in for a ‘demonetization’ of currency in late 2016 in an effort to flush out ‘black money’ or untaxed funds.
This impacted the business model of many real estate players as property has generally been used as a safe investment avenue for such income.
Godrej Properties continues to announce new projects, even as many big names in the sector are either facing bankruptcy or going slow.