The board of GPL on 3 February 2022 approved a potential investment in DBR and also the setting up of a special purpose vehicle along with DBR to jointly undertake slum rehabilitation and MHADA redevelopment projects.

Following the news, shares of D B Realty hit an upper circuit limit of 5% at Rs 100.90.

GPL will subscribe to warrants convertible into equity shares aggregating to approximately 10% of the issued and paid-up capital of DBR for an aggregate amount of approximately Rs 400 crore.

GPL and DBR will each contribute an additional 300 crore towards the equity platform focused on redevelopment opportunities in Mumbai.

The equity platform will act as a strategic special purpose vehicle providing GPL with ROFR (Right of First Refusal) for all slum rehabilitation and MHADA redevelopment projects to be identified by DB across Mumbai under a 50:50 equity partnership with 10% development management fees to GPL. This will provide GPL access to a large number of slum rehabilitation and MHADA redevelopment projects in MMR.

Mohit Malhotra, MD & CEO, Godrej Properties said, "We are pleased to announce a strategic partnership with DB Realty, which will give GPL a strong platform for growth in Mumbai. We believe this strategic partnership will allow each company to utilize its complementary strengths to boost the amount of successful slum rehabilitation and MHADA redevelopment projects in the city thereby benefiting economically weaker sections of the population while contributing to the growth of Mumbai as the country's financial capital."

Meanwhile, on 3 February 2022 GPL said its consolidated net profit surged 171.43% to Rs 38.95 crore on 63.51% increase in net revenue to Rs 278.76 crore in Q3 December 2021 as compared with Q3 December 2020.

Profit before tax surged 116.44% to Rs 67.94 crore in Q3 FY22 from Rs 31.39 crore in Q3 FY21. EBITDA jumped 42% year-on-year to Rs 115 crore in Q3 FY22. EBITDA margin stood at 28.8% in Q3 FY22 as against 26.6% in Q3 FY21.

As on 31 December 2021, the company's net debt stood at Rs 313 crore, lower than Rs 3,077 crore as on 31 December 2020.

Q3 FY22 witnessed a total booking value of Rs 1,541 crore and total booking volume of 2.22 million square feet (sq. ft.) compared with total booking value of Rs 1,488 and total booking volume of 2.40 million sq. ft. in Q3 FY21.

The company added 3 new projects with saleable area of about 2.4 million sq. ft. in Q3 FY22. It delivered about 0.08 million sq. ft. in MMR in Q3 FY22. Construction worker strength stood at 143% of pre-Covid levels.

Commenting on the performance of Q3 FY2022, Pirojsha Godrej, executive chairman, GPL, said: "It is encouraging to see that the real estate sector in India has continued to strengthen despite the challenges of the third wave. Our own sales were muted in the third quarter due to several planned launches seeing minor delays, but we believe the current quarter will be our best ever for residential sales. We are also focused on adding several exciting new projects to our portfolio, which will set us up well for a very strong FY23."

In FY 2021, GPL emerged as the largest developer in India by the value and volume of residential sales achieved.