Prestige Estates raises funds: Real estate giant Prestige Estates Projects Ltd has raised Rs 5,000 crore by issuing shares to institutional investors through a qualified institutional placement (QIP). On August 29, the company launched its QIP to raise its funds. According to a regulatory filing on Wednesday, the fundraising committee of the board approved the issue of 2,986,8578 equity shares at Rs 1,674 apiece to qualified institutional investors. This issue price reflects a discount of 4.62 per cent over the floor price of Rs 1,755.09 set by the panel. In July, Prestige Estates had obtained shareholder approval to raise up to Rs 5,000 crore through public or private offers, including QIP, by issuing equity shares or other securities. Headquartered in Bengaluru, Prestige Estates is a leading developer with a strong presence in South India. The company has also expanded into the Mumbai and Delhi-NCR markets.
Expenses affect profit margin
Recently, Prestige Estates reported a 13 per cent decline in consolidated net profit at Rs 232.6 crore for the June quarter of FY24, compared with Rs 266.9 crore in the same period last year, due to higher expenses. However, its total revenue grew to Rs 2,024.5 crore in the first quarter of FY25 from Rs 1,966.3 crore a year earlier. In July, the company saw a 23 per cent drop in sales bookings to Rs 3,029.5 crore for the first quarter of this fiscal, down from Rs 3,914.7 crore a year earlier. Sales volume declined to 2.86 million sq ft from 3.83 million sq ft. Chairman and Managing Director Irfan Razack expressed satisfaction with the performance of the first quarter of FY25, citing a strong market presence despite delays due to election-related approvals. “Despite the delay in approvals and project launches, we achieved a commendable sales figure of over Rs 3,000 crore,” Razack noted. Prestige Estates remains optimistic about the 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, totalling 300 projects and covering an area of 190 million sq ft.(With PTI inputs)
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