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Bangalore: Godrej Properties, a part of Godrej Industries will launch its initial public offering (IPO) in the next three months with fresh issue of 10 percent shares. "About 3.5 percent shares will be available for pre-placement and the pre-IPO placement of shares will be completed a 'little before' the public issue," said Adi Godrej, Chairman of Godrej Group.

According to Godrej, the proceeds from the IPO will be utilized for new projects, however he did not mention the amount of money the company intends to raise, as the pricing was not decided. The company has mandated ICICI Securities and Kotak Mahindra to manage the issue. "There has been a partial recovery in the real estate sector, especially in the affordable housing segment and post-correction residential demand has improved but commercial demand is yet to pick up," said Godrej.Godrej Properties, which has announced projects in Ahmedabad, Kolkata and suburban Mumbai, is owned 80.3 percent by Godrej Industries. "There was 'tremendous demand' in affordable housing segment and Godrej Properties will have its projects in this segment," Godrej added.