IPO Watch: Prestige Hotel Ventures files draft papers with SEBI for ₹2,700 crore IPO

IPO Watch: Prestige Hotel Ventures Limited has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

Prestige Hospitality Ventures operates as a fully owned subsidiary of Prestige Estates Projects Ltd, encompassing all hospitality-related assets and projects of the Bengaluru-based real estate firm, Prestige Group. The company is the owner of properties including the JW Marriott Prestige Golfshire and Conrad Bengaluru.

Recently, Mint reported that Prestige Hospitality Ventures was expected to file its documents with the SEBI this month for a public offering aimed at raising between ₹2,000 and 2,500 crore, as per two sources who were directly familiar with its plans for expansion and fundraising.

“The process has started and the DRHP will be filed in two weeks or so,” said a source, as per Mint report. “The money will be used for funding the growth plans in the hotels and hospitality space.”

Prestige Hotel Ventures boosted its operational keys at a compound annual growth rate (CAGR) of 6.89% from FY22 to the nine months concluding on December 31, 2024. The portfolio encompasses prominent metropolitan areas and urban centers across India, including Bengaluru in Karnataka, Delhi-NCR, Mumbai in Maharashtra, Goa, Hyderabad in Telangana, and Chennai in Tamil Nadu.

Revenue generated from hospitality services rose to ₹662.681 crores in the nine-month period that concluded on December 31, 2024, compared to ₹560.343 crores during the same period ending December 31, 2023.

IPO details

The IPO consists of a fresh issue of equity shares with a face value of ₹5 each, totaling up to ₹1,700 crores, along with an offer for sale of equity shares with a face value of ₹5 each amounting to ₹1,000 crores.

Prestige Hotel Ventures intends to allocate approximately ₹1,121.276 crores from the net proceeds for the complete or partial repayment or pre-payment of borrowings that total ₹397.248 crores.

The company also plans to utilise funds from the net proceeds to pursue growth through unannounced acquisitions, other strategic ventures, and general corporate purposes.

JM Financial Limited, CLSA India Private Limited, J.P. Morgan India Private Limited, and Kotak Mahindra Capital Company Limited are the exclusive Book Running Lead Managers for this issue.

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