In Wednesday's intraday trade on the NSE, Prestige Estates shares fell as much as 5% to Rs 1,837 per share. The stock prices fell after the business said on Tuesday that it intends to raise money by a Qualified Institutional Placement (QIP), preferential issue, rights issue, private placement, or any other legally permitted means in accordance with regulatory criteria.

In addition, at the board meeting on June 21, the company's board will examine the potential monetization of assets in its hospitality division through share issuing. This effort may use primary or secondary issuance, or a combination of the two.

According to sources, Prestige Estates plans to value its hospitality company at between Rs 17,000 crore and Rs 20,000 crore in an initial public Offering (IPO).

Prestige Estates is a real estate firm with activities in over 12 major cities in India. It operates in a variety of areas, including residential, office, retail, hospitality, property management, and warehouse.

The company recorded a 70% decrease in total net profit to Rs 140 crore for the quarter ending March 2024, compared to Rs 468.4 crore in the same period last year. The decline in net profit was due to lesser income during the quarter. Its overall income for the quarter decreased to Rs 2,232.5 crore from Rs 2,938 crore in January-March FY23.

Prestige Estates' net profit climbed to Rs 1,374.1 crore in fiscal year 2023-24, up from Rs 941.8 crore the previous year. Total income for the year increased to Rs 9,425.3 crore from Rs 8,772 crore.

At 10:12 PM, the stock was trading 3.36 percent higher on the NSE, at Rs 1870.15 per share. In comparison, the NSE fell by 0.14 percent. The stock is currently selling at a price-to-earnings multiple of 47.96 times.