Prestige Estates shares gain 4% on launch of ₹5,000 crore QIP

In a filing to the stock exchanges after market hours on Thursday, the company said that its fund-raising committee passed a resolution authorising the opening of the issue at the board meeting held on August 29.

The company further informed that the Board has fixed and approved the floor price for the issue at ₹1,755.09 per equity share.

The floor price is almost 2.4% higher than Prestige Estates’ previous closing price of ₹1,714.50 on the NSE on Thursday.

The company has also said that it may offer a discount of not more than 5% on the floor price calculated for the issue.

Prestige Estates had announced on June 21, 2024, that its Board approved a proposal to raise ₹5,000 crore through a QIP offer.

According to reports, Prestige Estates plans to utilise the QIP proceeds for repayment or pre-payment, in full or in part, of some of the company’s borrowings, for the acquisition of land or land development rights, investment in subsidiaries and joint ventures (JVs), funding some of the projects and for general corporate purposes.

On Friday, Prestige Estates shares jumped as much as 3.96% to hit an intraday high of ₹1,793.9 apiece on the NSE. However, shares of Prestige Estates pared early gains to trade at 1,751 apiece, up 1.47%, on the NSE at 9:52 am.

The realty stock has gained over 48% year-to-date in 2024 and has almost tripled in value over the past one year as the company is scaling up significantly, targeting rental income to grow 5 times over the next four years and pre-sales growth of 25-30% per annum.