Prestige Estates Plans To Raise Up To Rs 5,000 Crore Via QIP; Monetise Hotel Biz

Realty firm Prestige Estates Projects Ltd plans to raise up to Rs 5,000 crore by selling equity shares to institutional investors and also monetise its hotel business through issuance of shares of its arm Prestige Hospitality Ventures.

Prestige Estates is one of the leading real estate developers in the country. It is into development of housing, office, shopping malls, warehousing and hospitality projects. The company has a significant presence in South India and has entered into Mumbai and Delhi-NCR property market.

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.

According to an investors presentation, Prestige Estates has 10 hotels in operations totalling 1,489 keys. It is developing 3 hotels with 955 keys and there are 5 hotels having 765 keys in pipeline.

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.

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 from Rs 8,772 crore.

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.