New Delhi, Aug 30 (PTI) Realty firm Prestige Estates Projects Ltd plans to raise up to Rs 5,000 crore by selling equity shares to institutional investors through private placement.

The company on Thursday launched its Qualified Institutional Placement (QIP).

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A fundraising committee of the board approved the floor price for the QIP issue at Rs 1,755.09 per equity share.

In July, the company had taken approval of its shareholders to raise capital by way of public or private offerings including through a QIP to eligible investors through an issuance of equity shares or other eligible securities for an amount not exceeding Rs 5,000 crore.

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Bengaluru-based Prestige Estates is one of the leading developers in the country, with a significant presence in the South India market.

The company has entered Mumbai and Delhi-NCR markets as well.

Recently, Prestige Estates Projects reported a 13 per cent decline in its consolidated net profit to Rs 232.6 crore in the June 2024 quarter on higher expenses.

Its net profit stood at Rs 266.9 crore in the year-ago period.

Total income rose to Rs 2,024.5 crore in the April-June period of the 2024-25 fiscal year from Rs 1,966.3 crore in the corresponding period of the previous year.

Last month, Prestige Estates Projects Ltd reported a 23 per cent decline in its sale bookings to Rs 3,029.5 crore in the first quarter of this fiscal on lower volumes due to delay in launches of new projects.

Its sale bookings stood at Rs 3,914.7 crore in the year-ago period.

The company sold 2.86 million square feet in April-June against 3.83 million square feet in the corresponding period of the previous year.

"We are pleased with our performance in Q1 FY25, which reflects our robust market presence. Despite the lag in approvals and project launches during the election period, we still crossed a commendable sales figure of Rs 3,000 crore," the company's CMD Irfan Razack had said.

The company maintained a healthy mix of sales from its top geographies -- Bengaluru (43 per cent), Hyderabad (32 per cent) and Mumbai (23 per cent).

"In the upcoming quarters, we look forward to launching an extensive pipeline of projects across diverse geographies," Razack had said.

Prestige Group builds residential, office, retail, hospitality and warehouse projects.

The Group has completed 300 projects spanning a developable area of 190 million square feet.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)