Prestige Group drops Rs 2,700 cr IPO plan for hospitality arm, cites bad market conditions
Realty firm Prestige Estates has withdrawn its IPO plan for its hotel business amid uncertain market conditions. The company initially aimed to raise Rs 2,700 crore through this public issue. A subsidiary, Prestige Hospitality Ventures Ltd, had filed a Draft Red Herring Prospectus with Sebi last year. The firm may consider reapplying for an IPO in the future based on market dynamics and necessary…
Prestige Estates Projects Ltd has withdrawn its plans for an initial public offering (IPO) of its hospitality subsidiary, Prestige Hospitality Ventures Ltd (PHVL). The company had aimed to raise ₹2,700 crore through the public issue. According to The Economic Times, the decision was made due to uncertain market conditions.
The subsidiary had filed a Draft Red Herring Prospectus with the Securities and Exchange Board of India (Sebi) last year. The Hindu BusinessLine reported that the board of directors decided to withdraw the prospectus on account of strategic considerations and uncertain market conditions. However, PHVL may consider filing a fresh draft prospectus with Sebi in the future if market conditions become suitable.
In August, Prestige Estates announced that Canada-based investment firm CPPIB had agreed to invest up to ₹3,000 crore in PHVL, as reported by Free Press Journal and Investing.com. The investment decision comes as an alternative to the IPO plan.
Brief written by urgent.news from The Economic Times - Top News, Hindu BusinessLine, Free Press Journal, Investing.com — 4 reports on this story. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
