The Moneycontrol newsbreak on Rs 5,000 crore Prestige Estates launch has been confirmed, with the board approving the launch of the QIP late evening on August 29 with a floor price of Rs 1755.09/share, as per an exchange filing.
Shares of Prestige Estates went up by nearly 3 percent at opening bell on August 30, on the back of this announcement. The move has come at a time when the stock has seen an uptick of 50.25 percent in the last six months.
It made an intraday high of Rs 1829.9 per share on the NSE, up 6.05 percent.
The share sale could result in an equity dilution of 7.45% of the pre-issue share capital.
Moneycontrol was first to report on on August 29 that Prestige Estates is likely to launch the Rs 5,000 cr QIP shortly. On June 24, Moneycontrol had also reported that the firm picked investment banks Kotak Mahindra Capital, JP Morgan, JM Financial and CLSA as advisors for the capital raise.
The company is also monetizing assets of the hospitality segment through Prestige Hospitality Ventures - a wholly-owned subsidiary - by way of issue of shares.
Prestige plans to repay or pre-pay some of the company's borrowings through these proceeds, and also use the funds to acquire land or land development rights.
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