Prestige Estates Issues INR 550 Crore Corporate Guarantee for Subsidiary's Term Loan

Prestige Estates Projects Limited , a prominent player in the Indian real estate sector, has taken a significant financial step by issuing a corporate guarantee of up to INR 550 crores. This guarantee is aimed at securing a term loan facility for its wholly owned subsidiary, Prestige Falcon Malls Private Limited, from DBS Bank India Limited.

Key Details of the Corporate Guarantee

Guarantor: Prestige Estates Projects Limited
Beneficiary: Prestige Falcon Malls Private Limited (wholly owned subsidiary)
Lender: DBS Bank India Limited
Guarantee Amount: Up to INR 550 crores
Purpose: To secure a term loan facility

Financial Implications

The corporate guarantee represents a contingent liability for Prestige Estates Projects Limited. This means that while it doesn't immediately impact the company's financial statements, it could potentially affect its financial position if the subsidiary fails to meet its loan obligations.

It's worth noting that the guarantee has been provided on an arm's length basis, ensuring compliance with regulatory requirements and maintaining transparency in inter-company transactions.

Company's Financial Position

To put this guarantee in context, let's look at some key financial metrics from Prestige Estates Projects Limited's recent balance sheet:

Metric	Current Year	1 Year Ago	Change
Total Assets	26,418.50	19,534.40	35.24%
Total Equity	11,856.90	6,834.70	73.48%
Current Assets	15,597.30	10,998.80	41.81%
Current Liabilities	12,506.50	10,647.60	17.46%

All figures in INR crore

The company has shown significant growth in its total assets and equity over the past year, which suggests a strong financial foundation. This robust financial position may have influenced the decision to provide the corporate guarantee to its subsidiary.

Potential Impact

While the company states that there is no immediate impact on its financial position due to this guarantee, it's important for investors and stakeholders to monitor the situation. The performance of Prestige Falcon Malls Private Limited and its ability to service the term loan will be crucial factors in determining whether this contingent liability materializes into an actual financial obligation for Prestige Estates Projects Limited.

As the real estate sector continues to evolve, such strategic financial moves by established players like Prestige Estates Projects Limited warrant close attention from market observers and investors alike.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.08%	+1.71%	-6.82%	+7.77%	-3.44%	+473.23%

Prestige Estates Projects Limited , a prominent player in the Indian real estate sector, has disclosed its latest monitoring agency report for the quarter ended September 30, 2025. The report, verified by ICRA Limited, confirms that there has been no material deviation in the utilization of proceeds from the company's Rs 5000 crore Qualified Institutional Placement (QIP) issued in August-September 2024.

Fund Deployment Aligned with Objectives

The monitoring report highlights that the fund deployment remains in line with the stated objectives of the QIP. These objectives include:

Debt repayment
Land acquisition
Investments in subsidiaries
General corporate purposes

Utilization Breakdown

As of September 30, 2025, the utilization of the QIP proceeds can be summarized as follows:

Objective	Amount Allocated (Rs Crore)	Amount Utilized (Rs Crore)	Unutilized Amount (Rs Crore)
Repayment of borrowings	1500.00	1500.00	0.00
Acquisition of land or land development rights	1000.00	1000.00	0.00
Investment in Subsidiaries and Joint Ventures	1250.00	829.35	420.65
General Corporate Purpose	1149.17	1149.17	0.00
Issue Related Expenses	100.83	100.83	0.00
Total	5000.00	4579.35	420.65

Unutilized Funds

The report indicates that Rs 420.65 crore remains unutilized as of the end of the quarter. These funds have been temporarily invested in fixed deposits with various banks, primarily State Bank of India and ICICI Bank, earning interest rates ranging from 3.05% to 5.25%.

Timely Implementation

Prestige Estates Projects has reported that all objectives are currently on schedule for completion. The company has set the following deadlines for various objectives:

Repayment of borrowings: March 31, 2025
Land acquisition and development rights: March 31, 2026
Investments in Subsidiaries and Joint Ventures: March 31, 2026
General Corporate Purposes: March 31, 2026

General Corporate Purpose Utilization

The funds allocated for General Corporate Purposes (Rs 1149.17 crore) have been fully utilized. The breakdown of this utilization is as follows:

Funding for working capital: Rs 697.91 crore
Land acquisition: Rs 148.94 crore
Loan Repayment: Rs 224.79 crore
Dividend: Rs 77.53 crore

Conclusion

The monitoring agency report provides transparency on the utilization of the QIP proceeds, demonstrating Prestige Estates Projects' commitment to its stated objectives. The absence of any material deviations and the on-schedule implementation of various objectives may be viewed positively by investors and stakeholders. As the real estate sector continues to evolve, the strategic deployment of these funds could play a crucial role in Prestige Estates' future growth and market position.