Prestige Hotel files Draft Red Herring Prospectus with SEBI
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The company proposes to utilise an estimated amount of INR 1121.276 Crores towards full or partial repayment or pre-payment of borrowings amounting to INR 397.248 Crores.
Prestige Hotel Ventures Limited, which operates upper upscale and upper midscale hospitality assets in India for both business and leisure travellers, has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator SEBI.
The IPO comprises of a fresh issue of equity shares of face value of INR 5 each aggregating up to INR 1700 Crores and an offer for sale of equity shares of face value INR 5, aggregating up to INR 1000 Crores.
From the net proceeds of the fresh issue, the company proposes to utilise an estimated amount of INR 1121.276 Crores towards full or partial repayment or pre-payment of borrowings amounting to INR 397.248 Crores availed by the Company and Material Subsidiaries, namely, Sai Chakra Hotels Private Limited and Northland Holding Company Private Limited, through investment in such subsidiaries amounting to INR 724.028 Crores. The company also proposes to utilise fund from the Net Proceeds towards pursuing inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes
Prestige Hotel is a part of the Prestige Group and Promoter, Prestige Estates Projects Limited has 38 years of experience in real estate development and has a market cap of INR 729.66 billion as of December 31, 2024.
As of December 31, 2024, Prestige Hotel’s portfolio included seven operational hospitality assets comprising 1,445 keys—of which 1,255 are currently operational—and one asset under renovation with 190 keys. The pipeline also includes three ongoing projects with 951 expected keys across 1.88 million sq. ft. of developable area, and nine upcoming assets with 1,558 expected keys across 2.64 million sq. ft. of developable area.
The company recorded a CAGR of 6.89% between FY22 and the nine months ended December 31, 2024. The portfolio is spread across major metro cities and urban centres such as Bengaluru in Karnataka, Delhi-NCR, Mumbai in Maharashtra, Goa, Hyderabad in Telangana and Chennai in Tamil Nadu.
The revenue from sale of hospitality services increased to INR662.681 crores in the nine months ended December 31, 2024, from INR560.343 crores in the nine months ended December 31, 2023. Further, the revenue from sale of hospitality services increased to INR795.695 crores in FY24 from INR636.169 crores in FY23 and INR191.715 crores in FY22, reflecting a CAGR of 103.73% between FY22 and FY24.