Why are Brigade Enterprises, Prestige Estates shares trading higher today?
Shares of Brigade Enterprises and Prestige Estates Projects rose up to 2% in opening trade on Friday, in an otherwise weak broader market. The surge in the share price of both Bengaluru-based real estate companies have been triggered by a common reason – fundraising through qualified institutional placement (QIP) share sale. While Brigade Enterprises has raised ₹1,500 crore by selling equity shares to institutional investors, Prestige Estates garnered ₹5,000 crore via QIP.
Buoyed by the development, Brigade Enterprises shares gained as much as 2% to ₹1,333.45 in the early trade, while the market capitalisation rose to ₹30,550 crore. The realty stock opened higher at ₹1,324 against the previous closing price of ₹1,300.75 on the BSE.
In a similar trend, shares of Prestige Estates climbed as much as 2.5% to ₹1,824.95 against the previous closing price of ₹1,781.10 apiece on the BSE. At the time of reporting, the stock was up 0.7% at ₹1,794, with a market capitalisation of ₹71,914 crore.
Meanwhile, the benchmark indices Sensex and Nifty were trading lower by 0.4% at 81,860 and 25,055 levels, respectively.
In an exchange filing this morning, South India-based Brigade Enterprises said that its board on September 5 approved the allotment of 1.3 crore equity shares worth ₹1,500 crore to eligible qualified institutional buyers. The issue price was ₹1,150 per equity share, a discount of 1.26% to the floor price and around 12% lower than the previous session’s closing price of ₹1,303. The issue opened on September 2, 2024 and closed on September 5, 2024.
As per the regulatory filing, the list of allottees with more than 5% of the issue include ICICI Prudential Bharat Consumption Fund, Kotak Small Cap Fund, Nippon India Small Cap Fund, Franklin India Multicap Fund, Smallcap World Fund, SBI Infrastructure Fund, Axis Flexi Cap Fund, and Goldman Sachs India Equity Portfolio.
Following the allotment of these shares, Brigade Enterprises' paid-up equity share capital rose to ₹244.2 crore, consisting of 24.42 crore shares with a face value of ₹10 each.
Also Read: Realty Czars Cash In On Demand Boom
Prestige Estates raises ₹5,000 cr via QIP
Prestige Estates Projects has informed exchanges today that it raised ₹5,000 crore by selling 2.98 crore equity shares to institutional investors through private placement. The company launched the QIP last week on August 29, which closed on September 4. The issue price was ₹1,674 each, a 4.62% discount to the floor price of ₹1,755.09 per share.
Following the allotment of equity shares in the issue, the paid-up equity share capital of the company stands increased to ₹430.730 crore, comprising 430,730,232 equity shares with a face value of ₹10 each.
As per the company, 26 allottees were offered more than 5% of the equity shares in the issue. The list includes ICICI Prudential Focus Equity Fund, HDFC Life Insurance Company Limited, Aditya Birla Sun Life Trustee Private Limited, Bandhan Sterling Value Fund, Max Life Insurance Co Ltd A/C Diversified Equity Fund, Motilal Oswal Midcap Fund, and others.
Post QIP, CLSA has recommended an "outperform" call on Prestige Estates, raising the target price to ₹2,380 per share. The brokerage house says equity fundraising is expected to significantly scale its residential and annuity businesses.
(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)