Bangalore-based realty firm Prestige Estates Projects is looking to raise as much as Rs 1,200 crore through fresh sale of equity shares to finance projects besides purchasing land and retiring debt. The company has filed a draft red herring prospectus with the market regulator.
It may be looking to strike a pre-IPO transaction to raise Rs 200 crore ahead of its public float.
The three co-promoters Irfan Razack, Rezwan Razack and Noaman Razack and their family members own 33% each in the company. It is not yet clear how much equity dilution the company is proposing in the public issue.
For the year ended March’09, the company had a total income of Rs 914 crore with net profit of around Rs 77 crore. At the existing share capital, the company had earnings per share of 2.9 for FY09.
A large part of its saleable area is in the residential space besides exposure in retail, commercial buildings and hospitality. Prestige has an existing joint venture with an associate firm of CapitaMalls (a large developer and operator of malls in Asia) to develop retail projects in south India in cities such as Bangalore, Mysore, Mangalore, Hyderabad and Cochin. It also entered into a JV with CapitaMalls to manage the retail malls developed by the joint venture.