Prestige Raises ₹462.64 Crore Through Institutional Share Placement

Capital Raise Through Qualified Institutional Placement

Prestige Estates Projects Ltd raised ₹462.64 crore through sale of shares to institutional investors. The fund raising committee of the company's board approved the allotment of around 1.24 crore equity shares at ₹372.50 apiece, aggregating to ₹462.64 crore.

The issue opened on January 30, 2020, and closed on February 4, 2020. Pursuant to the allotment, the paid up equity share capital of the company stands increased to ₹400.86 crore comprising of 40,08,61,654 equity shares.

Context: Prestige's Growth Trajectory

Prestige Group is a premier real estate developer in South India, with over 300 completed projects and 180 million sq.ft delivered in 38 years. Last month, the company had raised ₹437 crore through preferential allotment of shares to Singapore sovereign wealth fund GIC, with the board allotting 1,34,41,654 shares of ₹10 each to GIC affiliate firm on a preferential allotment basis, at a price of ₹325 per equity share.

Founded in 1986 and envisioned to create a world-class real estate organization, Prestige Group has established itself across major cities such as Bangalore, Chennai, Hyderabad, Kochi, and Mangalore. The company has won the CRISIL DA1 Developer Rating in recognition of the quality of its projects and the ability to deliver completed projects in a timely manner, making them the only property developer across India to have received this distinction.

Institutional Investor Confidence

The institutional placement represented investor confidence in the company's execution capabilities and growth pipeline. As of late 2022, institutional investors held a consolidated stake of 36.79 percent in the company, with promoters holding 60.94 percent and the public holding 2.26 percent.