Prestige Estates to Raise ₹5000 Crore, Monetize Hospitality Assets

Realty firm Prestige Estates Projects Ltd aims to raise up to ₹5000 crore via shares to institutional investors and plans to monetize its hotel business. The board has approved the fund-raising move and the monetization of hospitality assets, pending shareholder approval. A sub-committee will oversee the monetization process.

Realty giant Prestige Estates Projects Ltd is set to embark on an ambitious plan to raise up to ₹5000 crore by selling shares to institutional investors, according to a regulatory filing on Friday. The company's board has greenlit the move to issue equity shares or other eligible securities up to the stated amount via qualified institutional placement (QIP) or other permissible modes.

In a simultaneous move, the board also approved the monetization of its hospitality assets through its arm, Prestige Hospitality Ventures Ltd. This will involve the issuance of shares, either through primary or secondary channels, or both, pending shareholder approval.

A dedicated sub-committee has been formed to ensure the smooth execution of the monetization process. Their responsibilities will include compliance with regulatory requirements, and coordinating with advisors and underwriters to make necessary arrangements.

Prestige Estates, a leading real estate developer in India, reported impressive financial results for 2023-24, with a net profit increasing to ₹1,374.1 crore and total income rising to ₹9,425.3 crore. Operationally, the firm saw a 63% annual increase in sales booking, reaching a record ₹21,040 crore, driven by high demand for residential properties and improved average sales realization.