InvestorQ : What explains the sudden fall in the stock price of Godrej Properties?
Arti Chavan made post

What explains the sudden fall in the stock price of Godrej Properties?

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Rutuja Nigam answered.
3 months ago
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Godrej Properties stock slumped 10% after its board approved an investment of Rs.400 crore in DB Realty. This will give Godrej Properties 10% stake in DB Realty. DB Realty has been in the news recently for all the wrong reasons, which had led to panic among shareholders of Godrej Properties. In addition, Godrej Properites will also undertake slum rehabilitation and MHADA redevelopment projects; jointly with DB Realty.

Godrej Properties will subscribe to convertible warrants worth approximately 10% of paid-up capital of D B Realty for Rs.400 crore. Both Godrej Properties and DB Realty will each contribute an additional Rs 300 crore towards the redevelopment project. Godrej gets access to large number of slum rehabilitation and MHADA redevelopment projects in MMR.

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