Room for Growth: Prestige Hospitality Ventures Unveils ₹2,700 Crore IPO Ambitions

Prestige Hospitality Ventures Ltd, the hospitality division of realty major Prestige Estates Projects, has submitted its draft red herring prospectus to SEBI to raise up to ₹2,700 crore through an initial public offering (IPO). The IPO will include a fresh issue of shares aggregating ₹1,700 crore and an offer for sale (OFS) by the holding company up to ₹1,000 crore. A pre-IPO placement of as much as ₹340 crore can also be considered, which can cut down the fresh issue size.

 

Key Highlights:

 

IPO proceeds will be utilized to build new hospitality assets and repay outstanding debt, funding Prestige's strategy to increase its luxury and business hotel portfolio as travel recovers in India.

 

Prestige Hospitality Ventures has seven upscale hotels with 1,445 keys currently under operation, including marquee brands such as JW Marriott Prestige Golfshire and Conrad Bengaluru. Double the number of keys in three to four years is the expansion target planned by the company, with new developments such as St. Regis Bengaluru and a Delhi Aerocity convention centre in the works.

 

The move comes on the heels of a series of successful hospitality IPOs in India, indicating strong investor demand for high-end hotel assets with growing disposable incomes and an upsurge in leisure and business travel.

 

The lead managers of the IPO are J.M. Financial, CLSA, J.P. Morgan, and Kotak Mahindra Capital.

 

Prestige's issue is set to unleash value and drive growth in India's vibrant hospitality industry.

 

Sources: Economic Times, Reuters, CNBC-TV18, Rediff Money