Godrej Properties’-Mumbai based realty firm net debt has dipped by 24 pc to Rs 1,470 crore during the second quarter of this current fiscal, mainly with the help of funds raised through rights issue.

Net debt of Godrej Properties, the realty arm of Godrej Group, stood at Rs 1,650 crore at the end of the first quarter.

The net debt of Rs 1,260 crore stands at the lowest level it has been in the past 2 years and the borrowing cost has dropped both year-on-year and quarter-on-quarter to approximately 11.8pc.

The company’s debt-to-equity ratio that stood at 2:1 at the end of 2011 calendar year and was 1.1:1 at the end of the first quarter of this financial year has come down to a little over 0.5:1, according to transcript of Godrej’s conference call with analysts.

In the rights issue, which was oversubscribed, the firm raised Rs 720 crore which made it India’s largest rights issue in the first half of the current financial year. This capital has strengthened the balance sheet and has increased the ability to continue to add value accretive new projects in key markets.

According to sources, the part of funds raised would also be utilised to add new projects.

Stating that 75 pc of the rights issue capital came from the promoters, Godrej termed it as a strong signal of their confidence in Godrej Properties growth prospects.

Godrej Properties has presence in 12 cities across India with about 90 million sq ft of potential developable area.