Prestige Estates Projects is set to launch an IPO of Rs 4,000 crore for its hospitality business to unlock value and strengthen its balance sheet. Despite global market volatility, investor interest in the real estate and hospitality sectors is still hot.
According to reports, the IPO will consist of fresh equity and an Offer for Sale (OFS). The Prestige Group board has approved the IPO, and the Draft Red Herring Prospectus (DRHP) is in the final stages. The company is expected to file the DRHP by the end of April or early May 2025.
Prestige Group’s upcoming IPO, targeting to raise Rs 4,000 crore (approximately USD 599 million), is strategically aimed at strengthening its position in the hospitality sector and enhancing financial stability. A substantial portion of the proceeds will be allocated towards expanding its hospitality portfolio by developing new premium hotels and resorts across India, tapping into the country’s growing tourism and luxury accommodation market. Additionally, a significant share of the capital will be directed toward debt repayment, helping the company deleverage its balance sheet, improve its credit profile, and create a stronger foundation for future growth.
The hospitality division of Prestige Group currently comprises 10 high-end properties located in key cities, with a strong concentration in Bengaluru and Kochi. Notable assets include the JW Marriott Bengaluru Prestige Golfshire, Sheraton Grand Hotel & Convention Centre in Whitefield, Conrad Bengaluru, Moxy Bengaluru Airport, Angsana Oasis Spa & Resort, The Artiste Kochi, Twenty-Four Hotel at Prestige Tech Park, Mulberry Shades in Devanahalli, and The Golfshire Club. These premium properties have significantly enhanced the group’s standing in the luxury hospitality space. Now, through the IPO, Prestige Group aims to unlock shareholder value by leveraging the success and potential of its well-established hospitality portfolio.
Prestige Group has engaged top investment banks, including Kotak Mahindra Capital, JM Financial, JP Morgan, and CLSA, to manage the IPO process. A dedicated subcommittee within the company has been set up to ensure seamless execution of the public offering. This IPO follows the successful listings of other hospitality players, such as Samhi Hotels and Juniper Hotels, indicating a robust market appetite for quality hospitality assets.