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Prestige Group arm acquires 50% stake in Lokhandwala DB Realty
In a regulatory filing, the Prestige Group said the investment has made by way of capital account contribution. With this, the Bengaluru-based real estate developer now has 50 per cent economic and voting rights in Lokhandwala DB Realty.
Prestige Falcon Realty Ventures, a subsidiary of Prestige Estates Projects, has acquired 50 per cent stake in Lokhandwala DB Realty LLP.
In a regulatory filing, the Prestige Group said the investment has made by way of capital account contribution. With this, the Bengaluru-based real estate developer now has 50 per cent economic and voting rights in Lokhandwala DB Realty.
Capital account contribution is a process in which a company pays cash and other assets to acquire stakes in other firm.
Apart from this, Prestige Estates have got the approval from shareholders to raise funds via qualified institutional placement (QIP).
The QIP is a process by which a listed company raises capital by issuing securities to qualified institutional buyers (QIBs). QIP was a process started by the Securities and Exchange Board of India (SEBI) to make raising of finance easier for companies.
The Prestige Estate’s shareholders have also given their approval to issue and allot 13.44 million equity shares at ₹325 per share to GAMNAT Pte, an investment company, Business Standard reported.
The Bengaluru-based real estate developer had already transferred about 16.33 million shares, or a 4.36 per cent stake in the company to Singapore sovereign wealth fund GIC Pte.
The company, last year in September, announced foray into the Delhi-NCR market in partnership with local developer Ace Group to launch its first housing project in Noida. The cost of construction of the housing project was estimated at around ₹500 crore.
Prestige Group, a property development company, deals across commercial, residential, retail and hospitality segments.
The company has developed several commercial and residential projects across South India. Some of the famous projects include Prestige Shantiniketan, UB City, and Prestige Golfshire.
Founded by RazackSattar in 1986, Prestige Group has completed 236 real estate projects spanning nearly 125 million sqft of developable area.
