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Realtors raise ammo for growth

Mint New Delhi

|

February 24, 2025

Building blocks Fund raise by listed realty developers should aid their balance sheets and expansion requirements.

- Harsha Jethmalani

Residential real estate companies are amping up for the next leg of growth by strengthening their financial positions. To meet expansion needs, many listed grade A realtors are garnering funds.

Lately, the qualified institutional placement (QIP) route has emerged as the developers' choice. For instance, Godrej Properties Ltd raised ₹6,000 crore through the QIP route, followed by Prestige Estates Projects Ltd (₹5,000 crore), Macrotech Developers Ltd (₹3,300 crore) and Brigade Enterprises Ltd (₹1,500 crore).

In fact, the real estate sector contributed 16% to QIP fundraising in 2024 compared to nil in 2023, Anarock Property Consultants said in a recent report. This time, eight residential developers and one real estate investment trust (Reit) collectively raised ₹22,320 crore, Anarock said. Sobha Ltd and Ajmera Realty Ltd were exceptions, raising funds via rights issues and preference shares.

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