Prestige Hotel Ventures files DRHP with SEBI to launch Rs 2700 crore IPO

Prestige Hotel Ventures, a leading hospitality player in India, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a Rs 2,700 crore initial public offering (IPO). The IPO includes a fresh issue of equity shares worth Rs 1,700 crore and an offer for sale up to Rs 1,000 crore, facilitated by the promoter, Prestige Estates Projects. The IPO aims to raise funds for crucial financial goals, including debt reduction and strategic growth initiatives.
 

The company intends to allocate approximately Rs 1121.276 crore from the proceeds to repay or pre-pay borrowings. This includes Rs 397.248 crore in liabilities held by the company and its subsidiaries, Sai Chakra Hotels Private Limited and Northland Holding Company Private. An additional Rs 724.028 crore is earmarked for strategic investments in these subsidiaries. The remaining funds are set for inorganic growth through acquisitions and other strategic initiatives.
 

As part of the Prestige Group, Prestige Hotel Ventures Limited focuses on luxury, upper upscale, and upper midscale hospitality assets across India. The company boasts a significant portfolio, including seven operational hospitality assets and nine forthcoming projects, totalling 3,003 keys. With holdings in cities like Bengaluru, Delhi-NCR, and Mumbai, the company is strategically positioned in key urban centres.
 

Prestige Hotel Ventures has seen a substantial increase in its revenue from hospitality services, with a compound annual growth rate (CAGR) of 103.73% between FY22 and FY24. The company's track record is further bolstered by its affiliations with prestigious brands such as Marriott International and Hilton Worldwide, holding the largest number of keys under Marriott's managed portfolio in India.
 

The IPO will be managed by JM Financial, CLSA India, JP Morgan India and Kotak Mahindra Capital Company. These lead managers will guide the offering to potential investors, highlighting the company's robust growth and strategic positioning in the hospitality sector.
 

Prestige Hotel Ventures' strategic intent through this IPO underlines its commitment to strengthening its financial position and expanding its market presence. With a well-diversified portfolio and strategic partnerships, it seeks to leverage this IPO to further its growth ambitions in the competitive hospitality landscape.