Prestige Group to file DRHP soon: Sources

Excerpts from Reporter's Diary on CNBC-TV18 Watch the full show » RELATED NEWS Prestige Group ramps up investment plans

Bangalore based Prestige Group is looking at filing the draft red herring prospectus (DRHP) in the next few days, reports CNBC-TV18's Vineeetha Athrey quoting sources. According to sources, Bangalore based Prestige Group is going to file the DRHP (draft red herring prospectus) with the SEBI in the next few days.

The company is looking to raise Rs 1,200 crore via diluting 17-20% equity. It is also planning pre-IPO placement of Rs 200 crore, which will begin a week after DRHP filing. It is looking at anchor investors and green shoe provisions.

It is likely to use proceeds from the issue for expansion in Chennai, Cochin, Hyderabad, Mysore and Mangalore. It is also planning to use money for three affordable housing projects, 3 international hotels, SEZ, 2 million sqft township and malls. Total space under development stands at 45 million sq ft. Enam, Kotak and JP Morgan are bankers to the issue.

Here is a verbatim transcript of Vineeetha Athrey's comments on CNBC-TV18. Also watch the accompanying video.

We have picked up from sources that Prestige Group is looking at filing the DRHP over the next few days. Sources have also indicated that Prestige is looking to raise about Rs 1,200 crore through a stake dilution of anywhere between 17-20%. Importantly, sources say that the company is also looking at a pre-IPO placement and plans to raise upto Rs 200 crore through this exercise which according to sources will begin a week after filing the DRHP. Another important point is that according to sources the company is also looking at anchor investors and green shoe provisions as well. Bankers for this exercise according to sources are Enam, Kotak and JP Morgan. Prestige has a promoter holding of 100% and the total square feet under development is 45 million square feet and according to sources these funds will be used for expansions outside Bangalore in Chennai, Cochin, Coimbatore, Hyderabad, Mysore and Bangalore. Also three affordable housing projects in Bangalore, the first of which will be launched in March 2010; an SEZ, 2 million square feet of township, three international hotels, malls and the like.