Bengaluru-based real estate developer Prestige Estates Projects Ltd. has announced the funds to which shares were issued as part of their institutional share sale.

The company had announced the closure of its QIP on Wednesday, through which it raised over ₹5,000 crore.

New World Fund is the only foreign institution to whom shares have been issued as part of the QIP.

Max, HDFC, Aditya Birla Sun Life are among the domestic investors who have been issued shares.

Fund	% Of QIP Shares
ICICI Prudential Focus Equity Fund	5%
HDFC Life Insurance	6%
Aditya Birla Sun Life (Various Funds)	5%
New World Fund Inc.	12%
NPS Trust	5%
Max Life Insurance Co.	5%
Motilal Oswal Midcap Fund	5%
Bandhan MF (Various Funds)	5%

Prestige Estates is likely to use the proceeds for repayment in part or full for certain outstanding borrowings availed by the company or its subsidiaries.

The company also plans to use part of the proceeds to acquire land or for land developments rights. Additionally, it plans to use the funds to invest in subsidiaries and JVs for funding some of the ongoing projects and one upcoming project which will be undertaken by them and for general corporate purposes as well.

Brokerage firm CLSA has maintained its “outperform” rating on Prestige Estates with a price target of ₹2,380 per share, adding that the recent equity fund raise will help them scale up their residential and annuity businesses while maintain healthy gearing levels.

“We believe that the street’s concerns on growth visibility and rise in debt levels are now allayed with this fund raise and thus the stock warrants a re-rating,” the brokerage said in its note.

Shares of Prestige Estates ended 4.5% lower on Thursday at ₹1,785. The stock has risen 50% so far in 2024.