Prestige Estates shares rise 5% on Rs 2,001 cr deal with ADIA and Kotak AIF

Shares of real estate major Prestige Estates Ltd gained nearly 5 percent in early deals on Monday as the firm via its subsidiaries, inked a deal with Abu Dhabi Investment Authority (ADIA) and Kotak AIF for Rs 2,001 Crore ($240 Million) to capitalise on growth opportunities in the residential sector. The company would develop projects with Gross Development Value (GDV) of Rs 18,000 crore across 4 cities in India.

The collaboration with ADIA and Kotak AIF represents a considered move towards adopting strong and organic growth for Prestige Group.

Prestige Estates stock rose 4.73% to Rs 1225.30 today against the previous close of Rs 1169.95 on BSE. Total 9421 shares of the firm changed hands amounting to a turnover of Rs 1.13 crore in early deals. Market cap of Prestige Estates rose to Rs 48,993 crore on BSE. Prestige Estates shares have a one-year beta of 0.4, indicating very low volatility during the period.

In terms of technicals, the relative strength index (RSI) of Prestige Estates stands at 54.2, signaling it's trading neither in the overbought nor in the oversold zone.

Prestige Estates stock stands higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

“The deal, with its substantial size, upholds company's vision to sustain its leadership position in the industry. It is aimed at catalysing the development of early-stage residential projects, ensuring company's commitment to prudent expansion and diversified growth,” said the firm.

Irfan Razack, Chairman & Managing Director of Prestige Group said, "We are pleased to partner with ADIA and Kotak AIF, globally renowned & sovereign investors with an established track record of promoting sustainable growth across diverse industries. This marquee deal not only underscores the confidence of institutional investors in Prestige Group’s execution and corporate governance but also reflects our shared commitment to delivering excellence in real estate development pan-India.”

Prestige Group, one of the leading real estate developers in the country, has a legacy of almost four decades in real estate development. It has a diversified business model catering to various segments, viz Residential, Office, Retail, Hospitality, Property Management and Warehouses with operations in more than 12 major locations in India.