Prestige Hospitality Ventures Ltd, the hospitality arm of Bengaluru-based real estate firm Prestige Estates Projects Ltd, has taken a big step towards expanding its business. The company has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO), aiming to raise Rs 2,700 crore.
The draft prospectus was submitted to Sebi as the company plans to go public soon. According to industry sources, the IPO will include a fresh issue of shares worth Rs 1,700 crore and an offer for sale worth Rs 1,000 crore. The offer for sale will be made by Prestige Estates Projects Ltd, the parent company of Prestige Hospitality Ventures.
Board Approves Offer for Sale
Prestige Estates confirmed in a regulatory filing that the company’s board has formed a hospitality fund-raising committee. This committee has approved participating in the offer for sale of Prestige Hospitality Ventures Ltd, which will amount to Rs 1,000 crore. This move comes as the company looks to unlock value and raise capital to further strengthen its hospitality operations.
Out of the total Rs 2,700 crore expected to be raised through the IPO, Rs 1,700 crore will come from a fresh issue of equity shares. The funds will be used to expand the company’s hotel business and increase its presence in India’s growing hospitality market. This funding will help Prestige Hospitality Ventures invest in new properties, enhance guest services, and boost brand visibility.
Prestige Group Operates Seven Hotels
Prestige Hospitality Ventures currently operates seven hotels across the country and is planning to add more properties in the coming years. These hotels are part of the group’s overall real estate portfolio, which also includes housing, office spaces, and retail developments. With a strong brand and a growing demand for quality hospitality services, the company is well-positioned to scale up.
Prestige Estates is one of India’s leading real estate developers, known for delivering large-scale residential and commercial projects. By launching the IPO of its hospitality division, the company is moving strategically to raise capital, expand its hotel network, and create long-term value for shareholders. The IPO will also provide greater visibility and independence for its hospitality business.
