Bengaluru-based real estate developer Prestige Estates Projects Ltd has picked four investment banks as advisors for its big-bang QIP (qualified institutional placement) via which it plans to raise upto Rs 5,000 crore, two persons in the know told Moneycontrol.
"The firm has engaged investment banks Kotak Mahindra Capital, JP Morgan, JM Financial and CLSA for the deal, which is likely to get kicked off this week," said one of the persons above.
A second person confirmed the above syndicate and added that based on current plans, the QIP was likely to be launched in July-August this year.
ALSO READ: Prestige Estates Projects stock gains after board greenlights Rs 5,000 crore QIP
Both the persons above spoke on the condition of anonymity.
The move comes at a time when the stock of the realtor has had a scorching run on the bourses, with an uptick of 81.49 percent in the last six months.
When contacted, Prestige Estates Projects Ltd declined to comment. The four investment banks couldn't be reached for an immediate response.
On June 21, the board of directors of Prestige Estate gave the nod for the capital raise as well as monetization of assets of the hospitality segment by way of issue of shares (through primary or secondary or both.
According to the twin detailed disclosures, the board approved:
a) Raising of funds by way of issuance of equity shares or other eligible securities for an aggregate amount not exceeding Rs 5,000 crore by way of qualified institutional placement or other permissible mode in accordance with the applicable laws, subject to the receipt of the necessary approvals as may be required;
b) monetization of 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," the disclosure added.
In April, Prestige Group, which has listed peers like DLF, Macrotech Developers and Godrej Properties, announced that it had achieved a record-breaking sales milestone of Rs 21,040 crore for FY24, marking a growth of 63 percent year-on-year.
The firm said it achieved record sales bookings in volume terms as well, totalling 20.25 million square feet in 2023-24, up 34 percent.
In March, it struck a deal with global hotel company Marriot International to develop 6 hotels in India in Goa and Karnataka.
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