June 24, 2024: The board of real estate developer Prestige Estates on June 21, 2024, approved a plan to raise up to Rs 5,000 crore through the issuance of equity shares via a qualified institutional placement (QIP) in one or more tranches.
Additionally, the board approved the monetisation of assets in the hospitality segment through Prestige Hospitality Ventures, a wholly-owned subsidiary. This will involve issuing shares, pending shareholder approval, market conditions and necessary regulatory approvals. The company is considering either creating a real estate investment trust (REIT), potentially the first hotel REIT in India, or pursuing an initial public offering (IPO) for its hospitality business.
To oversee and structure this process, the board has established a sub-committee. This committee will ensure regulatory compliance, coordinate with advisors and underwriters, and manage all necessary arrangements. Prestige Estates has engaged JM Financial, JP Morgan, and CLSA as bankers for the hospitality business listing.
Prestige Group, with over three decades of experience in real estate development, operates across various segments including residential, office, retail, hospitality, property management, and warehousing in more than 12 locations across India. The group has completed 300 projects, covering a developable area of approximately 190 million square feet.
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