Prestige Estates Projects said in the regulatory filing that it has infused an amount of Rs2 lakh to acquire 100% stake in Ariisto Developers for undertaking a realty project in Mulund, Mumbai.
The acquisition has been through a resolution plan submitted by the Company in the corporate insolvency resolution process of Ariisto, which was approved by the Committee of Creditors and subsequently by the National Company Law Tribunal (NCLT), Mumbai Bench on March 23, 2021, and shall be completed in terms thereof.
On June 23, 2021, the Company has also paid an amount of Rs370cr, as the upfront cash as per the terms of the approved resolution plan.
As per the terms of the resolution plan approved by the NCLT Mumbai bench, the Company will pay Rs370cr to the lenders of the Project along with 800,000 sq ft commercial space to be developed as part of the Project.
The Project to be undertaken by the Company comprises of a mix of residential and commercial use and has a potential saleable area of approximately 7.5 million square feet.
This transaction does not fall within the definition of related party transaction. The promoter/ promoter group/ group companies have no interest in the entity being acquired, it added.
The stock ended at Rs287.45 down by Rs2 or 0.69% from its previous closing of Rs289.45 on the BSE. The scrip opened at Rs290 and touched a high and low of Rs293.35 and Rs285.70 respectively.