Prestige Estates board to raise Rs 50 bn from institutional investors
Prestige Estates Projects has announced plans to raise Rs 50 billion from institutional investors to strengthen its hospitality business. The board approved a proposal to raise the funds through a public sale of shares to institutional investors or other permissible methods, according to a filing with BSE. Additionally, the board has approved a plan to monetize the hospitality business and formed a subcommittee to oversee the process.
The Bengaluru-based company is considering either creating a real estate investment trust (REIT), potentially the first hotel REIT in India, or pursuing an initial public offering to monetize its hospitality assets.
Zaid Sadiq, Executive Director- Hospitality, Prestige Group, mentioned the firm's evaluation to unlock value from its hospitality portfolio, though he was unavailable for comment.
Analyst reports suggest this move could reduce Rs 9 billion of gross debt from Prestige Estates' books and ease some cash flow stress related to the capital expenditure plan in the hospitality segment. (Source: ET)
Related Stories
Prestige Estates subsidiary buys 4.5 acres in Pune for Rs 2 billion+
Prestige Estates is currently raising up to Rs 50 billion through a QIP of equity shares.
Prestige Estates raises Rs 50 billion by selling equity shares via QIP
Prestige Estates informed that the board approved the allocation of 2,98,68,578 equity shares.
Page {{currentPage}} of {{pageCount}}
{{copy}}