Shares of Prestige Estates gained over 2% in early deals today amid a weak broader market after the realty firm said its board on June 21 approved a proposal to raise Rs 5,000 crore through QIP (qualified institutional placement), the company said in a regulatory filing.
The stock gained 2.51% to Rs 2040.85 against the previous close of Rs 1990.70 on BSE.
Total 7056 shares of the firm changed hands amounting to a turnover of Rs 1.41 crore. Market cap of Prestige Estates stood to Rs 78,737 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 66.7, signaling it's trading neither in the overbought nor in the oversold zone.
Prestige Estates shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
In the exchange filing it said, "Raising of funds by way of issuance of equity shares or other eligible securities for an aggregate amount not exceeding Rs. 5,000 Crores (Rupees Five Thousand Crores only) by way of qualified institutional placement (“QIP”) or other permissible mode in accordance with the applicable laws, subject to the receipt of the necessary approvals as may be required."
Additionally, board of the realty firm also cleared the proposal to monetise assets of the hospitality segment through Prestige Hospitality Ventures Limited, wholly owned subsidiary of the Company by way of issue of shares (through primary or secondary or both) subject to approval of shareholders, market conditions and receipt of applicable approvals.
The board formed a sub-committee to oversee and structure the process in this regard. The committee is tasked with the responsibility of ensuring compliance with all regulatory requirements, coordinating with advisors and underwriters, and making all necessary arrangements.