Prestige Estates' board approves fund raise of ₹5000 crore via QIP or other modes

Prestige Estates' board on June 21 approved a ₹5000 crore fundraising plan through qualified institutional placement (QIP) or other permissible modes, the company said in a regulatory filing.

The Bengaluru-based company’s board also approved the monetization of its hospitality assets through a share issue and has formed a sub-committee to oversee the process.

This was decided at the board meeting held on June 21.

Also Read: Prestige Group expands footprint in Delhi-NCR; acquires 62.5 acres in Ghaziabad for a township project

“This is to inform you that the Board of Directors of Prestige Estates Projects Limited (“Company”) at its meeting held today i.e. June 21, 2024 have considered and approved the following… Raising of funds by way of issuance of equity shares or other eligible securities for an aggregate amount not exceeding Rs. 5,000 Crores (Rupees Five Thousand Crores only) by way of qualified institutional placement (“QIP”) or other permissible mode in accordance with the applicable laws, subject to the receipt of the necessary approvals as may be required,” the company said in a regulatory filing.

Also Read: Prestige group raises ₹2,001 cr from ADIA, Kotak AIF to build housing projects across four cities

The board also decided to monetize 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, it said.

Also Read: More than 101 land deals for approximately 2,989 acres closed in FY-24 across cities, including Ayodhya

A sub-committee has been constituted 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 company said.

Also Read: Prestige Group acquires 21 acres of land in Whitefield, Bengaluru, for ₹450 crore

Shares of Prestige Estates Projects closed at Rs1,995.00 down by 0.93% on June 21.