India's Prestige Estates Projects approves $599 mln fundraise (updated)

Prestige Estates Projects

21/06/2024 15:17

(Updates with details, background)
       BENGALURU, June 21 (Reuters) - Prestige Estates Projects
 PREG.NS  said on Friday it will raise 50 billion rupees ($598.6
million) by issuing shares to institutional investors. 
    The Indian real estate developer added its board has
approved the monetization of its hospitality assets through a
share issue and has formed a sub-committee to oversee the
process.
    The Bengaluru-based firm has been working on hiving off and
listing its hospitality business, which operates 10 hotels in
Bengaluru and Kochi, including JW Mariott and Sheraton Grand.
    Prestige Estates had flagged the need to raise capital in
May. 
    Sustained travel demand and successful listings of hotel
firms, such as Samhi Hotels  SAMH.NS  and Juniper Hotels
 JUNI.NS , have inspired investor confidence in the sector, with
consumer giant ITC  ITC.NS  also looking to carve out its hotel
business. 
    Prestige Estates tapped JM Financial, JP Morgan and CLSA as
bankers for the listing of its hospitality business, local
broadcaster CNBC TV18 had reported earlier this month.
    The company's shares closed 1.5% lower on Friday. 

($1 = 83.5240 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Shreya
Biswas)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))