Prestige Group drops ₹2,700 cr IPO plan for hospitality arm, cites bad market conditions
The company informs that the board of directors decided to "withdraw the DRHP on account of strategic considerations and uncertain market conditions"
Prestige Group has abandoned its plans to launch an initial public offering (IPO) for its hotel business due to unfavorable market conditions and other factors. In April 2021, the company's subsidiary, Prestige Hospitality Ventures Ltd (PHVL), had submitted a Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) to raise up to ₹2,700 crore through a public offering.
The decision to withdraw the DRHP was made by the board of directors in a regulatory filing on Friday, citing strategic considerations and uncertain market conditions. PHVL may reconsider filing a fresh DRHP for an IPO in the future, provided there are suitable market conditions, receipt of requisite approvals, and other considerations.
In August 2023, Prestige Estates announced that the Canada-based investment firm CPPIB would invest up to ₹3,000 crore in its hospitality arm, with a binding framework agreement executed between the companies. CPPIB plans to invest up to ₹3,000 crore in PHVL in multiple tranches. Prestige Estates, based in Bengaluru, is a prominent real estate developer, creating homes, offices, malls, and hotels across major cities.
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