Prestige Estates, one of India’s leading real estate developers, announced on June 21 that its board has approved a proposal to raise ₹5,000 crore through a Qualified Institutional Placement (QIP). This decision was disclosed in a regulatory filing.
In the filing, Prestige Estates stated, “Raising of funds by way of issuance of equity shares or other eligible securities for an aggregate amount not exceeding ₹5,000 crore by way of qualified institutional placement or other permissible mode in accordance with the applicable laws, subject to the receipt of the necessary approvals.”
The board also approved a proposal to monetize assets of its hospitality segment through Prestige Hospitality Ventures Limited, a wholly-owned subsidiary. This will involve issuing shares through primary or secondary means, subject to shareholder approval and market conditions. A sub-committee has been formed to oversee the process, ensure regulatory compliance, and coordinate with advisors and underwriters.
Prestige Estates has engaged JM Financial, JP Morgan, and CLSA as bankers for the listing of its hospitality business, as reported by CNBC TV18 earlier this month.
The company reported a 70% decline in consolidated net profit, down to ₹140 crore for the quarter ended March 2024, from ₹468.4 crore in the same period last year, due to lower income. However, for the fiscal year 2023-24, net profit rose to ₹1,374.1 crore from ₹941.8 crore the previous year. Total income increased to ₹9,425.3 crore from ₹8,772 crore in 2022-23.
On Friday, Prestige Estates’ shares closed at ₹1,995.00, down by 0.93%. Despite this, the company’s share price has surged 20% in the last month and 69% in the last six months, significantly outperforming the Nifty, which gained 5% and 10% in the same periods, respectively.
