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)
