Prestige Estates’ board has approved a ₹5000 crore fundraising plan through qualified institutional placement (QIP) or other permissible modes, as announced in a board meeting held on June 21, 2024. The company, headquartered in Bengaluru, also decided to monetize its hospitality assets by issuing shares through Prestige Hospitality Ventures Limited, a wholly owned subsidiary. A sub-committee has been formed to oversee this process, ensuring compliance with regulatory requirements and coordinating with advisors and underwriters.
The decision to raise funds was made in accordance with applicable laws, subject to necessary approvals. The company plans to issue equity shares or other eligible securities for an amount not exceeding Rs. 5,000 crores. Additionally, the board aims to monetize assets of the hospitality segment to facilitate further growth and expansion.
Prestige Estates has appointed JM Financial, JP Morgan, and CLSA as bankers for the listing of its hospitality business. Despite a 70% decline in consolidated net profit for the quarter ended March 2024, the company has witnessed significant growth in net profit and total income during the 2023-24 fiscal year.
On Friday, shares of Prestige Estates closed at Rs1,995.00, marking a 0.93% decrease. Over the past month, the company’s share price has surged by 20%, outperforming the Nifty index. The approval by the board signifies Prestige Estates’ strategic approach to funding and asset monetization, reflecting its commitment to sustainable growth and value creation.
