Prestige Group – In a bold step towards unlocking value and capitalizing on investor interest in India’s booming hospitality sector, Bengaluru-based real estate giant Prestige Group is preparing to launch an Initial Public Offering (IPO) for its hotels business, with an estimated size of Rs 4,000 crore, according to a report by Moneycontrol.
Original article by Moneycontrol. Narayan Venture is not the original writer.
Sources familiar with the matter revealed that the IPO will consist of a mix of primary and secondary share sales, and the draft red herring prospectus (DRHP) is already in its advanced stages. The company aims to file the DRHP by the end of April or early May.
“The company’s board has approved the IPO plan and work on the draft red herring prospectus is in advanced stages,” said one of the sources cited by Moneycontrol. “The plan is to raise up to Rs 4,000 crore through a mix of primary and secondary share sale.”
Purpose of the IPO
The primary proceeds from the IPO will reportedly be utilized for developing new hospitality properties and reducing the company’s existing debt — a strategic move as Prestige seeks to strengthen its balance sheet and expand its footprint in the hotel segment.
Prestige is working alongside four investment banks, including Kotak Mahindra Capital and JM Financial, to manage the IPO process.
As of now, Prestige Group has not officially commented on the development. An email inquiry from Moneycontrol had not received a response at the time of their publication.
Hospitality Amid Market Volatility
Despite ongoing market volatility — influenced by global geopolitical and economic factors — the hospitality and real estate sectors are attracting heightened interest from investors. Industry insiders believe this trend is driven by the perceived stability and growth potential of these segments in the medium to long term.
“We are seeing a strong interest from real estate and hospitality companies for both IPOs and QIPs. These are some of the sectors that are expected to fare better in the near term,” said another source.
Inside Prestige’s Hospitality Portfolio
Prestige’s hotel portfolio includes some high-end and well-known properties in key locations, especially Bengaluru. These include:
- Sheraton Grand Hotel & Convention Centre, Whitefield
- JW Marriott, Devanahalli
- Conrad Bengaluru (under Hilton Group)
- Mulberry Shades, Devanahalli
- Angsana Oasis Resort & Spa, Yelahanka
- Twenty Four, business hotel at Prestige Tech Park
- Moxy Bengaluru Airport (Marriott brand)
- The Artiste, a resort property in Kochi
This diverse and premium lineup underscores the group’s strong position in the Indian hospitality sector and explains the interest such an IPO might generate among institutional and retail investors alike.
A Trend Among Hospitality Players
Prestige’s move comes amid a broader wave of hospitality IPOs in India. The sector has witnessed heightened investor interest, driven by the surge in travel and tourism, especially among India’s growing base of middle-class and young travelers. Here’s a quick look at other recent hospitality IPOs:
- The Leela (Brookfield-owned): Filed for a Rs 5,000-crore IPO in September 2024
- Brigade Hotel Ventures (Brigade Group): Filed for an IPO recently
- Ventive (Blackstone and Panchshil-backed): Raised Rs 1,600 crore in December; stock is up 16%
- Juniper Hotels (Hyatt brand): Raised Rs 1,800 crore in February 2024; stock is down 20%
- Apeejay Surrendra Park Hotels: Raised Rs 920 crore; stock trading slightly above its IPO price of Rs 155
- SAMHI Hotels Ltd: Raised Rs 1,370 crore in September 2023; stock up 40% from its IPO price
With Prestige Group now joining this growing list, the Indian hospitality IPO space is clearly heating up, reflecting both optimism in the sector and strategic realignments by major players to unlock value.
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