Prestige Estates to Unlock Value in Hospitality Business with QIP Fundraising
The Bengaluru-based real estate developer plans to raise funds via QIP, subject to board, shareholder, and market approval.
Prestige EstatesQipHospitality BusinessReal EstateFundraisingReal Estate NewsJun 19, 2024
The board will also consider monetizing assets in the hospitality segment through the issue of shares, which could be done via the primary method, secondary method, or both. This will be subject to approval from the board, shareholders, and market conditions.
According to sources, Prestige Estates is seeking a valuation between ₹17,000 crore to ₹20,000 crore through the initial public offering (IPO) of its hospitality business. The company plans to raise between ₹2,000 crore to ₹3,000 crore through this issue.
JM Financial, JPMorgan, and CLSA have been appointed as investment bankers for the public offer. Prestige Estates has clarified that raising capital is a normal activity in the real estate business, and the company is contemplating raising funds for a few of its projects, including hospitality projects.
Shares of Prestige Estates have been outperformers compared to its peers, having tripled over the last 12 months. The stock has gained nearly 240% during this period. Brokerage firm CLSA has maintained its 'buy' recommendation on the stock, increasing its price target to ₹2,320 from ₹1,875 earlier.
Information
Prestige Estates is a leading real estate developer in India, with a strong presence in the residential, commercial, and hospitality segments. The company has a diverse portfolio of projects across various cities in India.
Prestige Estates is a Bengaluru-based real estate developer with a strong track record of delivering quality projects across residential, commercial, and hospitality segments.
Frequently Asked Questions
What is Prestige Estates planning to do with its hospitality business?
Prestige Estates is planning to unlock value in its hospitality business by raising funds through a qualified institutional placement (QIP) and monetizing assets in the hospitality segment.
How much is Prestige Estates seeking to raise through its IPO?
Prestige Estates is seeking to raise between ₹2,000 crore to ₹3,000 crore through its IPO.
What is the current valuation of Prestige Estates' hospitality business?
Prestige Estates is seeking a valuation between ₹17,000 crore to ₹20,000 crore for its hospitality business.
How have shares of Prestige Estates performed in the last 12 months?
Shares of Prestige Estates have tripled over the last 12 months, gaining nearly 240% during this period.
What is the target price for Prestige Estates' stock according to CLSA?
CLSA has increased its price target for Prestige Estates' stock to ₹2,320 from ₹1,875 earlier.
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