Sovereign wealth funds buy into Prestige’s QIP

BANGALORE: Prestige Estates Projects has closed the issue of its qualified institutional placement (QIP) mopping up close to Rs 615 crore. The Bangalore-based developer tendered in 25 million shares-- belonging to the promoter family — to a clutch of fund houses based in the US, UK, and Asia, said sources briefed on the matter.
A couple of sovereign wealth funds from South East Asia and West Asia also picked up shares in the QIP, which was oversubscribed in excess of 1.5 times of the original issue.The QIP had a base issue target of $75 million with a clause for Prestige to upsize to $100 million if there was an over subscription.
Post the QIP, the Razack family, promoters of Prestige, will have a 70% shareholding in the company from their earlier stake of 75%. The proceeds from the QIP, which was first reported by TOI earlier this week, will be used by Prestige to grow its pipeline of development activity.
The developer plans to launch 15 million-sqft of new development this fiscal, of which it has already launched 5 million sqft in the quarter ended June.
Last month the developer struck a record land deal, buying 8.3 acres of prime land belonging to German conglomerate Siemens in South Bangalore for Rs 345 crore. Prestige plans to do a luxury-residential cum retail development on this land parcel.
When contacted company CFO and executive director Venkat K Narayana said, “The QIP book closed on Tuesday and allocations have happened,” but declined to offer additional details. Prestige’s share price was up 0.81% at Rs 249.10 a piece at the end of Wednesday’s trade, even as the Bombay Stock Exchange was down 0.94%.