Prestige Hospitality Ventures Seeks to Raise ₹2,700 Crore Through IPO; Growth, Debt Retirement in Focus

Pre-IPO Placement of ₹340 Crore Also Being Considered

Prestige Hospitality Ventures, a wholly-owned subsidiary of Prestige Estates Projects, has reportedly filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) worth up to ₹2,700 crore.

As shared by sources, the public offering will consist of a fresh issue of equity shares aggregating up to ₹1,700 crore along with an offer for sale (OFS) of shares amounting to ₹1,000 crore by the parent entity. The company is also considering a pre-IPO placement of shares up to ₹340 crore. In the event the pre-IPO placement is undertaken, the fresh issue size will be adjusted accordingly.

Focus on Expansion and Debt Reduction

It has been indicated that the net proceeds from the IPO are expected to be deployed towards developing new hospitality assets and reducing existing debt. The move forms part of Prestige Group’s larger strategy to unlock value from its expanding hospitality portfolio, especially as domestic and international travel markets witness a resurgence.

JM Financial, CLSA, JP Morgan, and Kotak Mahindra Capital have been appointed as the lead book-running managers for the public issue.

A Growing Hospitality Portfolio

Prestige Hospitality Ventures manages the hospitality division for the real estate group and is known for operating marquee properties such as JW Marriott Prestige Golfshire and Conrad Bengaluru. Presently, the company’s operational portfolio comprises seven hotels totaling 1,445 keys.

In addition to its existing assets, the company is actively developing a series of high-end properties across major urban centres. Key upcoming projects include a St. Regis hotel in Bengaluru and a large convention centre in Delhi’s Aerocity, both being developed in collaboration with global hospitality leader Marriott International.

Looking ahead, the company has outlined an ambitious plan to double its hotel key count over the next three to four years.

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