Prestige hotel arm to file for ₹2,000-2,500 cr IPO in April

Company may dilute 10% stake in public offer; funds to be used for growth, retiring debt

- Madhurima Nandy & Anirudh Laskar

Prestige Hospitality Ventures Ltd is likely to submit its papers to the market regulator Securities and Exchange Board of India (Sebi) this month for a public listing to raise ₹2,000-2,500 crore, according to two people directly aware of its expansion and fundraising plans.

"The process has started and the DRHP (draft red herring prospectus) will be filed in two weeks or so," said one of the people mentioned above, on condition of anonymity. "The money will be used for funding the growth plans in the hotels and hospitality space."

"Prestige is looking to dilute 10% stake in the subsidiary through the proposed IPO (initial public offering) and has plans to significantly ramp up its hotel portfolio," said the second person, also requesting anonymity. "Apart from growth, part of the funds may be used to shave off debt."

Prestige Hospitality Ventures is a wholly owned subsidiary of Prestige Estates Projects Ltd, which houses all hospitality assets and projects of Bengaluru-headquartered Prestige Group. The company owns properties such as JW Marriott Prestige Golfshire and Conrad Bengaluru.

The move to go public comes in the backdrop of the realty major putting its hotel business expansion plans on the fast track in the backdrop of the country's thriving hospitality and tourism market.