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Prestige Hospitality Ventures Limited (PHVL), the hospitality arm of Bengaluru-based Prestige Estates Projects Ltd, has officially filed its Draft Red Herring Prospectus (DRHP) with plans to raise ₹2700 crore through its Initial Public Offering (IPO). This move marks a significant step for the company as it prepares to go public and list its shares on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
What the IPO Will Involve
The IPO will include a mix of two main components:
- A fresh issue of equity shares with a face value of ₹5 each, totaling up to ₹1700 crore.
- An offer for sale (OFS) of equity shares, also with a face value of ₹5 each, amounting to ₹1000 crore.
The exact price band and minimum bid lot for the shares will be determined in consultation with the lead managers of the IPO.
Who is Handling the IPO?
Prestige Hospitality Ventures Limited has appointed four prominent book-running lead managers for the public issue:
- JM Financial Ltd
- CLSA India Private Ltd
- J.P. Morgan India Private Ltd
- Kotak Mahindra Capital Company Ltd
The registrar for the IPO is KFin Technologies Limited.
How Will the Funds Be Used?
The proceeds from the IPO are intended for the following key purposes:
- Repayment of Borrowings: The company plans to use a portion of the funds to repay or prepay certain outstanding loans and accrued interest, both for itself and its material subsidiaries (Sai Chakra Hotels Private Limited and Northland Holding Company Private Limited).
- Inorganic Growth and Strategic Initiatives: PHVL aims to use some of the funds to explore potential acquisitions and other strategic initiatives, along with general corporate purposes, which will support its growth.
About Prestige Hospitality Ventures Limited
Established on December 29, 2017, Prestige Hospitality Ventures Limited is the dedicated hospitality division of Prestige Estates Projects Ltd, a leading real estate conglomerate based in Bengaluru. The company manages a large and growing portfolio of luxury hotels and resorts across India.
Currently, PHVL operates 10 hotels with a total of 1,489 keys. Additionally, the company has 3 hotels under development, adding 955 keys, and has plans for 5 more hotels, totaling 765 keys.
The company has also partnered with globally recognized hospitality brands like JW Marriott, Sheraton Grand, and Conrad by Hilton, which have helped elevate its presence in the market.
Financial Performance
In the fiscal year 2023-24, PHVL saw a slight dip of 3.42% in its total revenue. However, despite the decline in revenue, the company managed a notable 24.49% increase in profit, showcasing its improved operational efficiency. Unfortunately, PHVL’s net worth decreased by 7.49% during the same period.
Upcoming Funding and Future Plans
In March 2025, PHVL announced that it would receive ₹1,625.04 crore in equity funding from its parent company, Prestige Estates Projects Ltd. This funding is expected to enhance PHVL’s financial position and fuel its expansion plans, including preparations for the upcoming IPO.
Conclusion
As Prestige Hospitality Ventures Limited moves forward with its ₹2700 crore IPO, it is positioning itself for further growth in the hospitality sector, supported by strong financial backing and strategic partnerships with global hotel brands. The IPO is an important milestone for the company as it seeks to expand its footprint in the competitive hospitality industry.
