Prestige Hospitality Ventures Ltd., a subsidiary of Prestige Estates Projects Ltd., has filed its draft red herring prospectus (DRHP) with the market regulator for a proposed initial public offering (IPO) of up to ₹2,700 crore. This Bengaluru-based company, known for its association with premium hospitality brands, aims to use the public issue to restructure its finances and expand operations.
The proposed IPO will comprise a fresh issue of equity shares worth ₹1,700 crore and an offer for sale (OFS) of ₹1,000 crore by its parent company, Prestige Estates. Additionally, the company may consider a pre-IPO placement of up to ₹340 crore before filing the red herring prospectus with the Registrar of Companies.
From the fresh issue proceeds, Prestige Hospitality intends to allocate approximately ₹1,120 crore towards the repayment and prepayment of certain outstanding borrowings. These borrowings are currently held by the company and its subsidiaries—Sai Chakra Hotels Pvt. Ltd. and Northland Holding Co. The remainder of the funds raised will be directed towards inorganic growth initiatives and general corporate purposes.
The proceeds from the OFS will be transferred directly to Prestige Estates Projects Ltd., which holds a 100% stake in the hospitality arm at the time of DRHP filing.
Read More: Upcoming IPO 2025 | IPO Watch List – Mainline and SME.
Prestige Hospitality Ventures is positioned as an asset owner and developer of hospitality properties across the luxury, upscale, and upper midscale segments. The company has entered into strategic operating arrangements with internationally renowned hospitality chains, most notably Marriott International.
Its operating portfolio features brands such as St. Regis, JW Marriott, and Sheraton. The company also has partnerships with Hilton Worldwide’s Conrad and Banyan Group’s Angsana Resorts. These associations underline Prestige Hospitality’s focus on managing high-end assets in India’s growing hotel market.
As of December 2024, Prestige Hospitality’s portfolio consisted of 7 operational assets totalling 1,445 keys, all located in Bengaluru. The company also has three ongoing developments that are expected to add 951 rooms, with projects located in both Bengaluru and Delhi.
Looking ahead, the company has announced nine upcoming hospitality projects that are projected to contribute an additional 1,558 keys to its overall inventory, reflecting its continued emphasis on expansion and strategic growth in prime urban centres.
The filing of the DRHP and the forthcoming IPO mark a significant financial event for both Prestige Hospitality Ventures and Prestige Estates Projects. While the former seeks capital to manage liabilities and scale operations, the latter is looking to partially monetise its investment in the hospitality arm.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 25, 2025, 3:03 PM IST
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