Prestige Estates secures Rs 5,000 crore through QIP

Prestige Estates raises funds: Real estate giant Prestige Estates Projects Ltd has raised Rs 5,000 crore by issuing shares to institutional investors via a Qualified Institutional Placement (QIP).

On August 29, the company launched its QIP to boost its funds. According to a regulatory filing on Wednesday, the board's fundraising committee approved the issuance of 2,98,68,578 equity shares at Rs 1,674 each to qualified institutional investors. This issue price reflects a 4.62 per cent discount on the floor price of Rs 1,755.09 set by the panel.

In July, Prestige Estates had secured shareholder approval to raise up to Rs 5,000 crore through public or private offerings, including QIP, by issuing equity shares or other securities.

Based in Bengaluru, Prestige Estates is a leading developer with a strong foothold in South India. The company has also expanded into the Mumbai and Delhi-NCR markets.

Expenses hit profit margin

Recently, Prestige Estates reported a 13 per cent decline in consolidated net profit to Rs 232.6 crore for the June 2024 quarter, compared to Rs 266.9 crore in the same period last year, due to increased expenses. However, its total income grew to Rs 2,024.5 crore in Q1 FY25 from Rs 1,966.3 crore the previous year.

In July, the company experienced a 23 per cent drop in sale bookings to Rs 3,029.5 crore for the first quarter of this fiscal year, down from Rs 3,914.7 crore the previous year. The sales volume decreased to 2.86 million square feet from 3.83 million square feet.

Chairman and Managing Director Irfan Razack expressed satisfaction with the Q1 FY25 performance, citing strong market presence despite delays due to election-related approvals. "Despite the lag in approvals and project launches, we achieved a commendable sales figure of over Rs 3,000 crore," Razack noted.

Prestige Estates remains optimistic about future prospects, with plans to launch a significant number of projects across various regions. The group's portfolio includes residential, office, retail, hospitality, and warehouse developments, totaling 300 projects and covering 190 million square feet.

(With PTI Inputs)