Prestige Group withdraws Rs 2,700 crore IPO plan for hospitality arm
Realty firm Prestige Estates has withdrawn its initial public offering plan for its hospitality business, Prestige Hospitality Ventures Ltd (PHVL), citing strategic considerations and uncertain market conditions. The subsidiary had filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in April last year with plans to raise up to Rs 2,700 crore through the public issue. The board of directors approved the withdrawal in a regulatory filing on Friday.
The withdrawal comes despite earlier fundraising efforts for the hospitality arm. In August this year, Canada-based investment firm CPPIB agreed to invest up to Rs 3,000 crore in PHVL through multiple tranches under a binding framework agreement. Bengaluru-based Prestige Estates is one of the leading real estate developers, with operations spanning homes, offices, malls, and hotels across major cities.
The company has indicated it may reconsider the IPO in the future. According to the filing, PHVL might consider filing a fresh draft red herring prospectus with Sebi subject to suitable market conditions, receipt of requisite approvals, and other considerations.
