Prestige Estates raises Rs 5,000 crore by selling equity shares via QIP
The company has entered the Mumbai and Delhi-NCR markets as well.
Realty firm Prestige Estates Projects Ltd has raised Rs 5,000 crore by selling equity shares to institutional investors through private placement.
The company had on August 29 launched its Qualified Institutional Placement (QIP) to raise funds.
In a regulatory filing on Wednesday, Prestige Estates informed that a fundraising committee of the board approved the allocation of 2,98,68,578 equity shares at an issue price of Rs 1,674 apiece to eligible institutional investors.
The issue price was at a discount of 4.62 per cent on the floor price of Rs 1,755.09 per share fixed by the panel.
In July, the company had taken approval of its shareholders to raise capital by way of public or private offerings including through a QIP to eligible investors through an issuance of equity shares or other eligible securities for an amount not exceeding Rs 5,000 crore.
Bengaluru-based Prestige Estates is one of the leading developers of the country, with a significant presence in the south Indian market.
The company has entered the Mumbai and Delhi-NCR markets as well.
Recently, Prestige Estates Projects reported a 13 per cent decline in its consolidated net profit to Rs 232.6 crore in the June 2024 quarter on higher expenses.
Its net profit stood at Rs 266.9 crore in the year-ago period.
The company’s total income rose to Rs 2,024.5 crore in the April-June period of the 2024-25 fiscal year from Rs 1,966.3 crore in the corresponding period of the previous year.
Last month, Prestige Estates Projects Ltd reported a 23 per cent decline in its sale bookings to Rs 3,029.5 crore in the first quarter of this fiscal on lower volumes due to delays in launches of new projects.
Its sale bookings stood at Rs 3,914.7 crore in the year-ago period.
The company sold 2.86 million square feet in April-June against 3.83 million square feet in the corresponding period of the previous year.
“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,” the company’s CMD Irfan Razack had said.
The company maintained a healthy mix of sales from its top geographies — Bengaluru (43 per cent), Hyderabad (32 per cent) and Mumbai (23 per cent).
“In the upcoming quarters, we look forward to launching an extensive pipeline of projects across diverse geographies,” Razack had said.
The Prestige Group builds residential, office, retail, hospitality and warehouse projects.
The group has completed 300 projects spanning a developable area of 190 million square feet.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Sep 05 2024 | 7:42 AM IST