Prestige Estates board on 21 June approved the proposal to raise Rs 5,000 crore through QIP (qualified institutional placement), the company said in a regulatory filing. Prestige Estates is one of the leading real estate developers in the country. It has a significant presence in South India.
In the exchange filing it said,"Raising of funds by way of issuance of equity shares or other eligible securities for an aggregate amount not exceeding Rs. 5,000 Crores (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.
Additionally, the Prestige Estates board also approved the proposal 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 board has formed 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.
Prestige Estates tapped JM Financial, JP Morgan and CLSA as bankers for the listing of its hospitality business, CNBC TV18 had reported earlier this month.
The company posted 70% decline in consolidated net profit at Rs 140 crore for the quarter ended March 2024 on lower income. Its net profit stood at Rs 468.4 crore in the year-ago period. During 2023-24 fiscal year, net profit rose to Rs 1,374.1 crore from Rs 941.8 crore in the preceding year. Total income increased to Rs 9,425.3 crore from Rs 8,772 crore in 2022-23.
On Fiday the shares of Presitge Estates closed at Rs1,995.00 down by 0.93%.
The company's share price has jumped 20 percent in the last 1 month and 69 percent in the last 6 months, far outpacing Nifty, which has gained 5 percent and 10 percent, respectively.
*With Agency Inputs
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