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Prestige Estates Projects Shares Jumped 2.81% On Board’s Nod To Raise Rs 5,000 crores Via QIP

All these decisions are subject to the approval of shareholders.

Shares of Prestige Estates Projects Limited experienced an increase of 2.81% on June 24 following the announcement of the board of directors at Prestige Estates has given the green light to a proposal aimed at raising Rs 5,000 crore through a qualified institutional placement (QIP), as disclosed in a recent regulatory filing.

The board also approved a plan to generate revenue from the hospitality segment through Prestige Hospitality Ventures Limited, a company fully owned by the Company. This will involve issuing shares, either through primary, secondary, or a combination of both.

In a regulatory filing, the company outlined the board’s endorsement of the “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.”

Furthermore, the board of Prestige Estate Projects has also approved plans to “monetize 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 the approval of shareholders.

For the monetisation of hospitality assets, the Prestige Estate Projects’ board has established 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 exchange filing stated.

In the quarter that concluded in March 2024, Prestige Estates recorded a 70% year-on-year decline in consolidated net profit, amounting to Rs 140 crore, while the total income decreased by 31% year-on-year to Rs 2,232 crore.

At 12:33 pm, the shares of Prestige Estate Projects were trading 1.49% higher at Rs 2,012.75 on NSE.

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