 "Prestige Estates raises ₹5,000 crore amid declining profits, expanding into Mumbai and Delhi-NCR markets despite project launch delays.")
Prestige Estates Projects Ltd, a major real estate developer, has successfully raised Rs 5,000 crore through a Qualified Institutional Placement (QIP) aimed at institutional investors. The share allocation consisted of nearly 29.9 million equity shares priced at Rs 1,674 each, reflecting a 4.62% discount from the floor price. With a strong presence in southern India, the company has recently expanded into Mumbai and Delhi-NCR markets. Despite a 13% drop in consolidated net profit for the June 2024 quarter, Prestige reported a total income increase. The company is poised to launch a significant pipeline of projects and continues to focus on residential, office, retail, and hospitality developments across various regions.
Realty firm Prestige Estates Projects Ltd has recently made headlines by raising Rs 5,000 crore through a successful equity share sale aimed at institutional investors. The company launched its Qualified Institutional Placement (QIP) on August 29, 2024, and subsequently reported that its board approved the allocation of nearly 2.99 crore equity shares at Rs 1,674 each. This price comes at a slight discount of 4.62% from the established floor price of Rs 1,755.09.
Bengaluru-based Prestige Estates is a key player in the Indian real estate sector, expanding its footprint to major markets such as Mumbai and Delhi-NCR. Although the company experienced a 13% decline in consolidated net profit for the June 2024 quarter, it reported an increase in total income to Rs 2,024.5 crore compared to the same period last year. However, sales bookings fell by 23% as a result of delays in launching new projects.
Irfan Razack, the company’s CMD, expressed satisfaction with their performance, highlighting that even amid regulatory obstacles, they managed to surpass sales of Rs 3,000 crore. The firm’s strong sales came primarily from Bengaluru, Hyderabad, and Mumbai. Looking ahead, Razack indicated plans to roll out a comprehensive pipeline of projects across various regions.
In addition to residential spaces, the Prestige Group is known for its diverse portfolio which includes office, retail, hospitality, and warehouse projects, having completed over 300 projects that total around 190 million square feet.
Tags: Prestige Estates, real estate, QIP, institutional investors, Mumbai, Delhi-NCR, property Market, Bengaluru, Irfan Razack.
What is Prestige Estates doing with the Rs 5,000 crore they raised?
Prestige Estates plans to use the money to fund new projects, reduce debt, and for general corporate purposes.
What does QIP stand for?
QIP stands for Qualified Institutional Placement, which is a way for companies to raise money by selling shares to big investors.
Why did Prestige Estates choose to raise money through QIP?
They chose QIP because it allows them to quickly raise a large amount of money from qualified investors.
Who are the typical investors in a QIP?
The typical investors in a QIP are large institutional investors like mutual funds, insurance companies, and pension funds.
Is raising money through QIP common for companies like Prestige Estates?
Yes, it’s quite common for companies in real estate and other sectors to raise funds through QIPs to support their growth and projects.
