Prestige Hotel Ventures Files DRHP for ₹2,700 Crore IPO
Bangalore: Prestige Hotel Ventures Limited, a leading hospitality asset owner and developer in India, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The IPO aims to raise up to ₹2,700 crore, comprising a fresh issue of equity shares worth ₹1,700 crore and an offer for sale of equity shares worth ₹1,000 crore by promoter Prestige Estates Projects Limited.
IPO Details
- Fresh Issue: ₹1,700 crore
- Offer for Sale: ₹1,000 crore by Prestige Estates Projects Limited
- Face Value: ₹5 per equity share
- Lead Managers: JM Financial Limited, CLSA India Private Limited, J.P. Morgan India Private Limited, and Kotak Mahindra Capital Company Limited
The company plans to utilize ₹1,121.276 crore from the net proceeds towards:
- Debt Repayment: ₹397.248 crore for partial or full repayment of borrowings
- Investment in Subsidiaries: ₹724.028 crore for growth initiatives
- Inorganic Growth: pursuing unidentified acquisitions and strategic initiatives
- General Corporate Purposes: supporting business operations and growth
Prestige Hotel Ventures is a part of the Prestige Group, with 38 years of experience in real estate development. The company focuses on luxury, upper upscale, and upper midscale hospitality assets in India, with a portfolio of:
- Operating Assets: 7 hospitality assets with 1,445 keys
- Ongoing Assets: 3 hospitality assets with 951 expected keys
- Upcoming Assets: 9 hospitality assets with 1,558 expected keys
- Revenue Growth: ₹662.681 crore in Q3 FY2024, reflecting a CAGR of 103.73% between FY22 and FY24
The company has partnerships with global brands like Marriott International and Hilton Worldwide, and aims to enhance portfolio diversification by identifying market gaps.
