Prestige Estates up 3% after board okays fundraising of Rs 5,000 cr via QIP

Prestige Estates stock price rise: Shares of real estate company Prestige Estates rose as much as 2.51 per cent to hit an intraday high of Rs 2,040.85 per share on Monday. 

The uptick in share price came after Prestige Estates announced that its board has approved fundraising of up to Rs 5,000 crore via qualified institutional placement (QIP).

In an exchange filing, Prestige Estates said, “Board of Directors of Company at its meeting held today i.e. June 21, 2024 have considered and approved raising of funds by way of issuance of equity shares or other eligible securities for an aggregate amount not exceeding Rs. 5,000 crore (Rupees Five Thousand Crores only) by way of qualified institutional placement (QIP) or other permissible mode in accordance with the applicable laws, subject to the receipt of the necessary approvals as may be required.”

 

Qualified Institutional Placement (QIP) allows listed companies to raise capital by issuing equities or equity convertible securities to qualified institutional buyers. This method of private placement enables companies to raise funds without diluting their management stake or undergoing extensive paperwork similar to an IPO process.

Furthermore, the board has agreed to monetise assets of the Hospitality segment through Prestige Hospitality Ventures Limited, wholly owned subsidiary of the company by way of issue of shares (through primary or secondary or both) subject to approval of shareholders, market conditions and receipt of applicable approvals. In this regard, the company said, the board has formed a sub-committee to oversee and structure the process. 

The committee is tasked with the responsibility of ensuring compliance with all regulatory requirements, coordinating with advisors and underwriters, and making all necessary arrangements, it added.

Prestige Estates Projects Ltd is a real estate developer engaged in residential, office, retail, and hospitality segments. Its operations span South India, Pune, Goa, and Ahmedabad.

The company’s projects include residential developments such as apartments, villas, plotted developments, and integrated townships, as well as commercial offerings like corporate offices, technology parks, special economic zones (SEZs), and built-to-suit facilities. It also specialises in hospitality projects such as hotels, resorts, and serviced accommodations, along with retail developments including shopping malls.

Additionally, Prestige Estates Projects Ltd provides comprehensive real estate services encompassing property management, sub-leasing, fit-out services, project and construction management, interior solutions, mall management, and operations of hospitality projects. 

The market capitalisation of Prestige Estates is Rs 80,881.86 crore, according to Bombay Stock Exchange (BSE).

The 52-week high of the stock is Rs 2,050.95 per share while its 52-week low is Rs 521 per share. 

At 1:53 PM, shares of Prestige Estates were trading 1.36 per cent higher at Rs 2,017.70. By comparison, BSE Sensex was trading 0.20 per cent higher at 77,363.26 levels.