Mumbai: In order to fund its expansion plans Godrej Properties Ltd is planning to enter the capital market this fiscal and it is in talks with investment bankers for this purpose.
“We are planning to enter the capital market this year to fund our various projects,” Godrej Properties Managing Director Milind Korde said.
The size of the issue is still in the drawing board stage and investment bankers have not yet been finalised, he added.
Godrej Properties, which has presence in Bangalore, Hyderabad, Mumbai, Pune and Kolkata is actively looking for opportunities in Chennai, Goa, Nagpur, Nashik and NCR, Korde told PTI.
Referring to interest rate hikes Korde said they are only a short-time irritant and would even out in the long run adding that, “When you look globally, interest rate hikes affect only in the short run and not in the long run.”
The Reserve Bank of India had increased the credit rate forcing banks to hike their primary lending rate, which in turn led to high home loan rates.
“However, despite the hike in interest rates, housing finance companies are growing at 30%. Even if it settles at 20%, it is still a good business,” Korde said.
Betting big on the growth in the IT sector, Korde said: “About 85% of the demand for commercial sector is coming from IT companies to set up offices and every one sq ft IT commercial space resulted in demand for seven sq ft of residential space.”
So, there is a huge demand for real estate projects and “we have lots of projects planned”, he added.