Prestige Hotel Ventures Seeks ₹2,700 Crore IPO as It Files Draft Papers with SEBI: A Major Move in the Hospitality Sector!

Prestige Hotel Ventures Set to Enter Public Market with Upcoming IPO

Prestige Hotel Ventures Limited is making headlines as it prepares to launch its initial public offering (IPO). The company recently submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI), paving the way for this significant financial move. As a fully owned subsidiary of Prestige Estates Projects Ltd, Prestige Hotel Ventures manages a portfolio of prestigious hospitality assets, including the renowned JW Marriott Prestige Golfshire and Conrad Bengaluru.

IPO Goals and Financial Insights

In its ambitious efforts, Prestige Hotel Ventures aims to raise up to ₹2,500 crores through this IPO, which is crucial for its expansion plans in the hospitality sector. The company has demonstrated impressive growth, with operational keys increasing at a compound annual growth rate (CAGR) of 6.89% from FY22 to the end of December 2024.

Key highlights include:

Revenue Growth: Hospitality services revenue soared to ₹662.681 crores for the nine months ending December 31, 2024, a notable increase from ₹560.343 crores in the same period last year.
Geographical Reach: The company’s portfolio spans major urban areas across India, including Bengaluru, Delhi-NCR, Mumbai, Goa, Hyderabad, and Chennai.

Structure of the IPO

The IPO comprises a fresh issue of equity shares valued at ₹5 each, aiming to raise up to ₹1,700 crores, coupled with an offer for sale of shares totaling ₹1,000 crores. The proceeds from this offering will be strategically allocated as follows:

Approximately ₹1,121.276 crores will be directed towards settling existing borrowings, which currently stand at ₹397.248 crores.
Additional funds will support the company’s growth strategy, including potential acquisitions and other corporate activities.

Management Team and Support

Prestige Hotel Ventures has enlisted a team of reputable financial institutions as exclusive Book Running Lead Managers for the IPO, including JM Financial Limited, CLSA India Private Limited, J.P. Morgan India Private Limited, and Kotak Mahindra Capital Company Limited.

As the company gears up for its public debut, investors will be closely watching its performance and growth trajectory in the bustling hospitality market. This IPO not only reflects Prestige Hotel Ventures’ expansion ambitions but also marks a pivotal moment in the evolving landscape of India’s hospitality sector.