Shares of Prestige Estates Projects Ltd. dropped by 2% after touching a day’s high of Rs 1,884.90 on 5th September, after the company raised Rs 5,000 crore by selling equity shares to institutional investors through private placement.

The company launched its Qualified Institutional Placement (QIP) on 29th August to raise funds.

In a regulatory filing on Wednesday, the company said a board fundraising committee had approved an allotment of 2,98,68,578 equity shares at an issue price of Rs 1,674 each to eligible institutional investors.

The issue price of Rs 1,674 per share was at a 4.62% discount to the floor price of Rs 1,755.09 per share, which was set by the panel.

In July, the company received shareholder approval to raise up to Rs 5,000 crore through public or private offerings, including QIPs, by issuing equity shares or other eligible securities to qualified investors.

The company reported a 13% decline in consolidated net profit to Rs 232.6 crore for the June 2024 quarter due to higher expenses.

The company’s net profit was Rs 66.9 crore in the year-ago period, while total income rose to Rs 2,024.5 crore in April-June 2024 from Rs 1,966.3 crore in the same period last year.

Last month, the company reported a 23% decline in sale bookings to Rs 3,029.5 crore in Q1 FY24-25 due to delays in new project launches, selling 2.86 million square feet compared to 3.83 million square feet in the year-ago period.

CMD Irfan Razack expressed satisfaction with Q1 FY25, achieving sales of over Rs 3,000 crore despite delays in project launches during the election period.

The company maintained strong sales from key markets—Bangalore (43%), Hyderabad (32%), and Mumbai (23%)—and plans to launch new projects across various regions in upcoming quarters.

At 10:47 AM, the shares of Prestige Estates were trading 2.34% lower at Rs 1,824.85 on NSE.

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