Prestige Estates Projects may launch Rs 5,000 crore QIP soon

Real estate developer Prestige Estates Projects Ltd is likely to launch its qualified institutional placement (QIP) shortly to raise as much as 5,000 crore, three people familiar with the development said on the condition of anonymity.

"The QIP is likely to be launched soon, maybe as early as this week," said one of the people. Two other persons confirmed the launch plans.

On June 24, Moneycontrol had reported that the firm picked investment banks Kotak Mahindra Capital, JP Morgan, JM Financial and CLSA as advisors for the capital raise. The report had added that a deal launch was likely in July-August this year.

The move comes at a time when the stock of the realtor has surged 50 percent in the past six months.

An email query to Prestige Estates was left unanswered at the time of publishing this article. The four investment banks couldn't be reached for an immediate response.

On June 21, the board of Prestige Estates approved the capital raising for its expansion plans 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 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.

Prestige Estates Projects Ltd reported a dip of 23 percent in its sale bookings to Rs 3,029.5 crore in the first quarter of this fiscal, as compared to Rs 3,914.7 crore in the year-ago period.

"We are pleased with our performance in Q1 FY25, which reflects our robust market presence. Despite the lag in approvals and project launches during the election period, we still crossed a commendable sales figure of Rs 3,000 crore," said the firm's Chairman and MD , Irfan Razack.

Also read: Buy Prestige Estates Projects; target of Rs 2100: Motilal Oswal

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.