Prestige Hotel Ventures Files DRHP for INR 2,700 Crore IPO The issue is being managed by a consortium of lead managers: JM Financial, CLSA India, J.P. Morgan India, and Kotak Mahindra Capital.
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Prestige Hotel Ventures Limited, a player in India's high-end hospitality sector, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), taking a major step toward launching an initial public offering (IPO) pegged at INR 2,700 crore. The issue is being managed by a consortium of lead managers: JM Financial, CLSA India, J.P. Morgan India, and Kotak Mahindra Capital.
The offering includes a fresh issue of shares worth INR 1,700 crore and an offer for sale of shares worth INR 1,000 crore by the company's promoter, Prestige Estates Projects Limited. The Bengaluru-based real estate heavyweight, with a market capitalisation of INR 729.66 billion as of December 2024, is now looking to unlock value in its fast-growing hospitality vertical.
With the IPO, Prestige Hotel Ventures aims to repay or prepay borrowings amounting to INR 397.25 crore through an investment of INR 724.03 crore into two of its material subsidiaries—Sai Chakra Hotels and Northland Holding Company. A portion of the proceeds will also fund acquisitions and other initiatives, alongside general corporate purposes.
Between FY22 and the nine months ending December 2024, the company expanded its number of operating keys at a CAGR of 6.89 per cent. Its revenue growth jumped from INR 191.72 crore in FY22 to INR 795.70 crore in FY24—a CAGR of 103.73 per cent. For the nine months ending December 2024, revenue stood at INr 662.68 crore, up from INR 560.34 crore during the same period the previous year.
As of December 2024, the company operates seven hospitality assets comprising 1,255 operating keys and one under-renovation property with 190 keys. It is also developing three properties expected to add 951 keys, and nine more in the pipeline will contribute 1,558 additional keys.
In total, the company has the largest key count among private hotel owners and developers in South India. Its portfolio includes convention center hotels, extended-stay residences, business hotels, and golf resorts, often located near airports, commercial hubs, and tourist hotspots.
