Bengaluru: Prestige Estates Projects Ltd plans to raise up to ₹5,000 crore through a qualified institutional placement (QIP) of shares, the real estate developer said in a regulatory filing on Friday.
The Bengaluru-based company said its board has approved a plan to monetize assets of its hospitality subsidiary, Prestige Hospitality Ventures Ltd, by issuing shares through the primary or secondary route, or both.
The decisions will be subject to shareholders’ approval, market conditions and receipt of applicable approvals, the company said. A sub-committee has been constituted to oversee and structure the process.
Prestige’s board has given its consent for an initial public offer of the hospitality business, chairman and managing director Irfan Razack had said earlier this year.
Prestige Estates in March signed an agreement with global hospitality giant Marriott International to develop six hotel projects in India in 2-5 years.
Prestige’s current operational hospitality portfolio comprises 10 hotels with 1,489 rooms for guests. The company has another eight hotels in the pipeline, including under-construction and upcoming projects.
India’s hotels sector grew at a compound annual growth rate (CAGR) of 8.4% between 2007 and 2023, according to data by HVS Anarock.
The consultancy firm’s recent analysis of India’s top 23 listed hotel companies by market capitalization shows these companies experienced a significant turnaround in 2022-23, with year-on-year growth rates doubling on average in a post-pandemic recovery.
Prestige Estates clocked ₹21,040 crore worth of residential sales in 2023-24, its highest ever, amid an ongoing housing boom in the country.
In May, the company rejigged its senior management team following the resignation of chief executive Venkat K. Narayana.
Shares of Prestige Estates closed at ₹1,995.00 each on NSE on 21 June, down 0.93%.
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Published: 21 Jun 2024, 09:37 PM IST