Shares of Godrej Industries surged 5.47% on Thursday’s early trades to reach a 52-week high of ₹ 1589.00 apiece on the National Stock Exchange (NSE) after the firm entered into an agreement to acquire a land parcel of 7.44 acres in Kolkata’s New Alipore from West Bengal Housing Infrastructure Development Corporation.
Godrej Properties emerged as the highest bidder in an e-auction conducted by the authority. It plans to develop this land parcel as a luxury group housing project with a developable potential of approximately 9.8 lakh square feet. The company expects that this will generate a revenue of ₹ 1200 crores based on the current business assumptions.
Gaurav Pandey, MD & CEO of Godrej Properties said, “The demand for luxury realty has been strong over the past few years. This will be our second luxury development in the city, and we aim to build an outstanding residential community that creates long-term value for its residents.”
New Alipore is one of the premium locations in Kolkata with an established physical and social infrastructure. It offers excellent connectivity to all major social and commercial hubs of the city.
Godrej Properties is the real estate development arm of the Godrej Group and is one of the most successful conglomerates in India. It brings the Godrej Group philosophy of innovation, sustainability, and excellence to the real estate industry.
With a market capitalization of ₹ 41,885 crores, Godrej Properties is a mid-cap company. It has a low return on equity of 6.37% and an ideal debt-to-equity ratio of 0.69. Its shares were trading at a price-to-earnings ratio (P/E) of 73.31. The company’s promoters hold a 58.48% stake in it followed by foreign institutions with 27.09%, retail investors with 9.74%, mutual funds with 2.72% and other domestic institutions with 1.97%.
Written By Simran Bafna
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