Prestige Estates shares fall on plan to raise funds via QIP

Shares of Prestige Estates slipped over 5% in early deals on Wednesday after the realty firm said it plans to raise capital via qualified institutions placements (QIP), preferential issue, rights issue, private placement or any other form. A decision to this effect will be taken in a meeting of baord of directors secheduled to be held on June 21.  The real estate stock fell 5.10% to Rs 1836.35 today against the previous close of Rs 1935.15 on BSE.

Total 0.42 lakh shares of the firm changed hands amounting to a turnover of Rs 7.93 crore. Market cap of Prestige Estates slipped to Rs 75,121 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 69.1, signaling it's trading neither in the overbought nor in the oversold zone. 

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

"We wish to inform you that a meeting of the board of directors of Prestige Estates Projects Limited (the "Company") is scheduled to be held on Friday, June 21, 2024 to, inter alia:

i) Consider and approve raising of funds through qualified institutions placements (QIP), preferential issue, rights issue, private placement or any other form of capital raise/method that may be permitted in accordance with the applicable provisions of the Companies Act, 2013 and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 as amended from time to time.

ii) To consider and approve Notice of Postal Ballot for seeking approval of shareholders.

iii) To consider the monetization of assets in the Hospitality segment by way of issue of shares (through primary or secondary or both) subject to approval of the board, shareholders, market conditions and receipt of applicable approvals, in compliance with applicable laws," said the firm in a communication to bourses. Prestige Estates is one of the leading real estate developers in the country.