Prestige fixes IPP price at Rs 166 per share

Plans to raise Rs 350 crore to fund its expansion projects

Bangalore-based publicly-held realtor, Prestige Estates Projects, on Thursday said that the company's  Institutional Placement Programme (IPP) committee has finalised the issue price of its IPP at Rs 160 per equity share. The company is planning to raise around Rs 350 crore through the Institutional Placement Programme to comply with Sebi norms, which calls for public float of at least 25%.

The promoters hold a little over 80% in the company. The issue, which closed January 23, 2013, was managed by CLSA India and J P Morgan India.

Prestige Estates will offer close to 20 million shares and additional shares of close to 2 million in case of over-subscription. Post this move, the promoters will hold 75% in the company. Prestige Estates has indicated that part of the proceeds would be to pay down its debt of around Rs 1,300 crore.

The realtor is planning to launch 20 million square feet of residential projects through 2013 compared with the 15 million sft development across assets in 2012.

Irfan Razack, CMD, Prestige Group, said, many existing areas in Bangalore were fast approaching saturation driven by the existing challenges including infrastructure constraints. “With the hope that the situation would improve, one can expect increased development in select areas in Bangalore, including townships in Sarjapur, Kanakapura Road and North Bangalore from Prestige,” Razack added.

In addition to the residential and retail space, the group has been making significant expansion with sizeable offerings in the commercial leasing market. Driven primarily by the IT/ ITeS sector, the office market has witnessed a steady growth.

On BSE the shares of the company closed at Rs 172.95 down 1.76%.