Prestige Estates to Raise Rs 5,000 Cr via QIP, Monetize Hotel Biz

New Delhi, Jun 22 (PTI) Realty firm Prestige Estates Projects Ltd plans to raise up to Rs 5,000 crore by selling shares to institutional investors and also monetise its hotel business.

According to a regulatory filing on Friday, the company's board approved "raising of funds by way of issuance of equity shares or other eligible securities for an aggregate amount not exceeding Rs 5,000 crore by way of qualified institutional placement (QIP) or other permissible mode."

The board also approved plans to "monetise assets of the hospitality segment through its arm Prestige Hospitality Ventures Ltd, by way of issue of shares (through primary or secondary or both)."

All these decisions are subject to approval of shareholders.

For monetisation of hospitality assets, the board has formed a sub-committee 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 filing said.

Prestige Estates is one of the leading real estate developers in the country.

During 2023-24, Prestige Estates' net profit rose to Rs 1,374.1 crore from Rs 941.8 crore in the preceding year.

Total income increased to Rs 9,425.3 crore last fiscal from Rs 8,772 crore in 2022-23.

On operational front, Prestige Estates reported 63 per cent annual increase in sales booking for the last financial year at record Rs 21,040 crore on strong demand for its residential properties and higher average sales realisation.

Prestige Group has completed 300 projects spanning a developable area of around 190 million square feet.