Prestige Estates to mull fundraising via QIP or rights issue, hospitality biz IPO or secondary sale

Prestige Estates is considering monetisation of its hospitality business.

Prestige Estates board will meet on 21 June to consider fund raising through various means including QIP (qualified institutional placement), rights issue or private placement, it said in a notice to stock exchanges.

Additionally, Prestige Estates will also consider monetisation of its hospitality business via primary or secondary issue of shares, it said.

Earlier, CNBC TV18 had reported citing unidentified sources that Prestige Estates is looking to raise Rs 2,000-3,000 crore in its hospitality business IPO, valuing the unit at Rs 20,000 crore. The company has reportedly appointed JM Financial, JPMorgan and CLSA as investment bankers for the public offer.

Prestige Estates 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.

Prestige Estates hospitality portfolio includes brands such as Mariott, Sheraton, Conrad and others. The company in March this year signed an agreement with Mariott International to develop six hotel projects in the country. The hotels will be developed in next 2-5 years.