Prestige Estates picks advisors for Rs 5,000-cr QIP, stock trading flat

Shares of Prestige Estates Projects are in news on Tuesday as the Bengaluru-based real estate developer has picked four investment banks as advisors for its major qualified institutional placement (QIP). The board of the firm has already approved to raise up to Rs 5,000 crore. Kotak Mahindra Capital, JP Morgan, JM Financial and CLSA are the advisors for the realty firm's major qualified institutional placement (QIB), according to reports. The QIP is likely to be launched in July-August this year.

Prestige Estates shares were trading on a flat note in early deals. The stock fell 0.70% to Rs 2041.55 against the previous close of Rs 2055.95 on BSE. Total 1190 shares of the firm changed hands amounting to a turnover of Rs 24.37 lakh. Market cap of Prestige Estates stood at Rs 81,833 crore on BSE. Prestige Estates shares have a one-year beta of 1.2, indicating very high volatility during the period. 

In terms of technicals, the relative strength index (RSI) of Prestige Estates stands at 69.6, signaling it's trading neither in the overbought nor in the oversold zone. 

Prestige Estates shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. 

On Friday last week, the realty firm said, "Raising of funds by way of issuance of equity shares or other eligible securities for an aggregate amount not exceeding Rs. 5,000 crores (Rupees Five Thousand Crores only) by way of qualified institutional placement (“QIP”) or other permissible mode in accordance with the applicable laws, subject to the receipt of the necessary approvals as may be required."

Additionally, the company’s board also cleared the proposal to  monetise assets of the hospitality segment through Prestige Hospitality Ventures Limited, wholly owned subsidiary of the company by way of issue of shares (through primary or secondary or both) subject to approval of shareholders, market conditions and receipt of applicable approvals. 

The board formed a sub-committee to oversee and structure the process in this regard. The committee is tasked with the responsibility of ensuring compliance with all regulatory requirements, coordinating with advisors and underwriters, and making all necessary arrangements.