Prestige Estates up 10% as arm acquires 50% stake in Lokhandwala DB Realty

Prestige Falcon Realty Ventures has invested in Lokhandwala DB Realty LLP by way of capital account contribution and has been admitted as partner of the LLP with 50 per cent economic & voting rights.

Shares of Prestige Estates Projects moved higher by 10 per cent to Rs 413 on the BSE on Monday, in an otherwise weak market, after the company's wholly owned subsidiary acquired 50 per cent stake in Lokhandwala DB Realty LLP. The stock of the Bengaluru-based real estate developer was trading at its all-time high level.

“Prestige Falcon Realty Ventures -- wholly owned subsidiary of Prestige Estates Projects -- has invested in Lokhandwala DB Realty LLP by way of capital account contribution and has been admitted as partner of the LLP with 50 per cent economic and voting rights,” the company said in exchange filing. READ HERE

That apart, the company has received shareholders approval to raise funds via qualified institutional placement (QIP). The shareholders have also approved to issue and allot 13.44 million equity shares at Rs 325 per share to GAMNAT Pte. The Singapore sovereign wealth fund GIC Pte already owns about 16.33 million shares, or a 4.36 per cent stake in the company. READ HERE

Prestige Estates has a presence across commercial, residential, retail and hospitality segments. It also offers property management services.

At 11:28 am, it was trading 9 per cent higher at Rs 408 on the BSE, as against a 0.48 per cent decline in the benchmark S&P BSE Sensex index. The trading volumes on the counter more than doubled with a combined 1.1 million shares changed hands on the NSE and BSE so far. In the past eight trading days, the stock has zoomed 32 per cent, as compared to a 2.5 per cent rise in the Sensex.