Prestige Group drops ₹2,700 cr IPO plan for hospitality arm, cites bad market conditions
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Realty firm Prestige Estates has shelved plans to launch an initial public offering of its hotel business because of uncertain market conditions and other factors.
In April last year, Prestige Estates Projects Ltd’s subsidiary, Prestige Hospitality Ventures Ltd (PHVL), filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to launch an IPO.
The company planned to raise up to ₹2,700 crore through a public issue.
In a regulatory filing on Friday, the company informed that the board of directors had decided to "withdraw the DRHP on account of strategic considerations and uncertain market conditions".
PHVL might consider filing a fresh Draft Red Herring Prospectus with Sebi in the future for an initial public offering of its equity shares, subject to suitable market conditions, receipt of requisite approvals and other considerations.
In August this year, Prestige Estates said that Canada-based investment firm CPPIB would invest up to ₹3,000 crore in its hospitality arm.
A binding framework agreement was executed between the companies, CPP Investment Board Pvt Holdings Inc (CPPIB) and PHVL.
Under the agreement, CPPIB proposed to invest up to ₹3,000 crore in PHVL in multiple tranches.
Bengaluru-based Prestige Estates is one of the leading real estate developers. It develops homes, offices, malls and hotels across major cities. The company has several hotels.