Brigade Enterprises, a prominent Bengaluru-based real estate developer, has launched a Qualified Institutional Placement (QIP) issue to raise up to INR 1,500 crore, following shareholder approval in March. The QIP, initiated on September 2, aims to expand the business by selling equity shares to investors. The committee of directors authorised the issue's opening and set a floor price of INR 1,164.70/share, while the share-price closed at INR 1,239.80 on the BSE, giving the company a market capitalisation exceeding INR 28,000 crore. Brigade reported a significant profit increase in Q1 FY25, with net profit doubling to INR 83.72 crore.
Brigade Enterprises, a prominent real estate developer based in Bengaluru, has initiated a Qualified Institutional Placement (QIP) issue to raise up to INR 1,500 crore. This strategic move, announced through a regulatory filing last week, aims to bolster the company's expansion plans by attracting equity investments from institutional investors. The QIP was officially launched on September 2, with a committee of directors authorising its opening and setting a floor price of INR 1,164.70 per equity share.
The decision to raise these funds follows shareholder approval granted in March, allowing Brigade Enterprises to issue securities worth up to INR 1,500 crore. The capital raised through this QIP will likely be directed towards various growth initiatives, including the development of new projects and the expansion of the company's footprint in the competitive real estate market, particularly in South India, where Brigade has established a significant presence.
Brigade Enterprises has demonstrated robust financial performance in recent times, further supporting its growth strategy. For the first quarter of the current fiscal year (April-June FY25), the company reported a substantial increase in consolidated net profit, which more than doubled to INR 83.72 crore compared to INR 38.53 crore in the same quarter of the previous year. This impressive growth in profitability reflects the company's successful execution of its projects and efficient management of resources.
Additionally, Brigade's total income for the April-June quarter rose to INR 1,113.44 crore, up from INR 685.43 crore during the corresponding period in the previous fiscal year. This significant increase in income highlights the company's ability to generate higher revenues, likely due to increased sales and successful project completions.
As Brigade Enterprises moves forward with its QIP issue, the infusion of new capital is expected to strengthen its financial position and enable the company to capitalise on emerging opportunities in the real estate sector, ensuring continued growth and expansion.
Advertisement
Facebook
Whatsapp
