Prestige Estates Projects Limited Looking to Raise Rs 5,000 Crore through QIP and to Monetize its Hotel Business

Prestige Estates Projects Ltd is looking to raise up to Rs 5,000 crore from share sales to institutional investors. It also plans to monetize the hotel wing of the business. According to a regulatory filing, the board has given its nod for the raising of funds.

Equity shares or securities by qualified institutional placement (QIP) or other modes permissible will be used to raise these funds. The plans will be put in place in July or August of this year. The group has brought in several large investment banks for this. A few of these are JP Morgan, JM Financial, Kotak Mahindra Capital, and CLSA.

The company's board has okayed the group's plans to monetize its hospitality wing. This will be done through Prestige Hospitality Ventures Ltd. Shares will be issued by primary, secondary, or both modes. These plans will need to be approved by the shareholders first.

The board has set up a sub-committee to look over and manage the process. It will make sure that all regulations are complied with and will work with underwriters and advisors. It will help in the process of monetization. The company is considering starting an investment trust, which is going to be the first hotel REIT in India.

Prestige Estates is one of India's top real estate developers. In the 2023-24 financial year, the company showed major growth. Its net profit was Rs 1,374.1 crore, increasing from Rs 941.8 crore the previous year. The company’s total income went up to Rs 9,425.3 crore. This is a rise from Rs 8,772 crore in 2022-23.

The company has also done excellently in stocks, with the value going up 81.49% in six months. There has been a 63% increase in sale bookings annually. It translates into Rs 21,040 crores in the last fiscal year. The group has 300 projects that cover an area of about 190 million square feet.

Prestige Estates has a great track record. It has consistently shown a solid performance. Raising funds and monetizing its hotel business will help the company to grow more. The steps being taken will help it strengthen its position as a leader in the real estate field.

Prestige Group prelaunch apartment is Prestige Raintree Park.