Prestige Estates Raises ₹5,000 Crore through QIP Route to Boost Growth
Realty firm Prestige Estates Projects Ltd raises ₹5,000 crore by selling equity shares to institutional investors through private placement.
Prestige EstatesQipReal EstateFundraisingInstitutional InvestorsReal EstateSep 04, 2024
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 ₹1,674 apiece to eligible institutional investors.
The issue price was at a discount of 4.62% on the floor price of ₹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 ₹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% decline in its consolidated net profit to ₹232.6 crore in the June 2024 quarter on higher expenses.
Its net profit stood at ₹66.9 crore in the year-ago period. The company's total income rose to ₹2,024.5 crore in the April-June period of the 2024-25 fiscal year from ₹1,966.3 crore in the corresponding period of the previous year.
Last month, Prestige Estates Projects Ltd reported a 23% decline in its sale bookings to ₹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 ₹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.
Frequently Asked Questions
What is the amount raised by Prestige Estates through QIP?
₹5,000 crore
What is the issue price of the equity shares?
₹1,674 apiece
What is the discount on the floor price?
4.62%
What is the total income of the company in the April-June period?
₹2,024.5 crore
What is the net profit of the company in the June 2024 quarter?
₹232.6 crore
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