Prestige Hospitality Ventures Ltd (PHVL), the hospitality arm of realty major Prestige Estates Projects Ltd, has filed preliminary documents with the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO) aiming to raise up to Rs 2,700 crore.
The Draft Red Herring Prospectus (DRHP) was filed late Thursday, marking a significant move by the Bengaluru-based group to unlock value in its hospitality portfolio. According to the filing, the IPO will comprise a fresh issue of equity shares aggregating up to Rs 1,700 crore and an offer-for-sale (OFS) aggregating up to Rs 1,000 crore by Prestige Estates Projects Ltd, the promoter selling shareholder.
In a regulatory filing on Thursday, Prestige Estates stated, “a hospitality fundraising committee of the board had approved the participation in the offer-for-sale of its subsidiary, Prestige Hospitality Ventures Ltd (PHVL), aggregating up to Rs 1,000 crore.”
Prestige Estates Projects Ltd is one of India’s leading real estate developers with a diversified portfolio spanning housing, office spaces, retail, and hospitality. The group has been strategically expanding its hospitality footprint in response to growing demand in India’s tourism and business travel sectors.
As of December 31, 2024, Prestige Hospitality Ventures’ portfolio includes seven operating hotels with a total of 1,445 keys, out of which 1,255 keys are currently operational. The company also owns one hospitality asset under renovation with 190 keys. In addition to its operating assets, PHVL is developing three hospitality projects expected to add 951 keys, covering 1.88 million sq. ft. of developable area. Furthermore, the pipeline includes nine upcoming hospitality assets with an expected addition of 1,558 keys spread across 2.64 million sq. ft. of developable area.
The proposed IPO is expected to strengthen Prestige Group’s balance sheet, support future growth initiatives in the hospitality sector, and allow investors an opportunity to participate directly in India’s growing hospitality market.
The IPO launch is subject to receipt of requisite approvals from SEBI, stock exchanges, and other regulatory authorities.
About Prestige Estates Projects Ltd:
Founded in 1986, Prestige Estates Projects Ltd is among India’s top integrated real estate developers with projects across residential, commercial, retail, leisure, and hospitality segments. The company has delivered numerous landmark developments across major cities including Bengaluru, Chennai, Hyderabad, Kochi, and Mumbai.