Prestige Estates rise Prestige Estates shares rise as board approves ₹5,000-crore QIP

The stock jumped nearly 3% to hit the day’s high of ₹2,039 on the National Stock Exchange of India (NSE). But it soon erased all its gains and fell 2% to hit an intraday low of ₹1,942.80. As of 12:30 pm, the share price was trading 1.33% higher at ₹2,009.

In a stock exchange notification late on Friday, Prestige Estates announced that its board had considered and approved raising funds by way of issuance of equity shares or other eligible securities for an aggregate amount not exceeding ₹5,000 crore by way of QIP or other permissible modes.

The Prestige Estates board also approved monetising assets of the company’s hospitality segment through Prestige Hospitality Ventures Ltd, a wholly-owned subsidiary of the company, by way of issue of shares (through primary or secondary, or both).

The company said that the decisions will be subject to shareholders’ approval, market conditions and receipt of applicable approvals.

Furthermore, the company’s board has formed a sub-committee to oversee and structure the process for monetisation of the hospitality segment. The committee has been tasked with the responsibility of ensuring compliance with all regulatory requirements, coordinating with advisors and underwriters and making all necessary arrangements.

Earlier this year, media reports said that Prestige Estates Projects was planning to list its hospitality business as part of its expansion strategy while managing debt levels.

In March, it was also reported that Prestige Estates was in discussions with Marriott Inc for a potential deal worth ₹4,250 crore to develop six properties across western and southern India.