Company That Bought Raj Kapoor’s Rs 100 Crore Bungalow Now Faces Billions In Debt: Here’s Why

Godrej Properties, a significant player in the real estate industry, is facing mounting debt issues. In the June quarter, the company’s net debt surged by 20 percent, reaching Rs 7,432 crore. The increase in debt is attributed to higher capital expenditures, especially in land acquisitions and construction activities.

In February 2023, Godrej Properties made a noteworthy acquisition by purchasing the bungalow of Bollywood’s legendary "Showman," Raj Kapoor, for approximately Rs 100 crore. The nearly one-acre property is located on Deonar Farm Road in Chembur, an area renowned for its upscale residential neighborhoods.

The company’s recent investment report highlights that its net debt reached Rs 7,432 crore by the end of the first quarter of the current fiscal year, a significant increase from Rs 6,198 crore as of March 31, 2024. Additionally, the debt-to-equity ratio has risen from 0.62:1 to 0.71:1 during the same period.

Despite the rising debt figures, Pirojsha Godrej, Executive Chairman of Godrej Properties, reassured that the net debt is at a satisfactory level and the debt-to-equity ratio aligns with the company’s strategic goals.

Founded in 1897 by Ardeshir Godrej and his brother, the Godrej Group boasts a history that predates India’s independence. Now 127 years old, the company operates in 90 countries worldwide. Among its many achievements, Godrej played a key role in India’s first general elections by providing the ballot boxes used post-independence.