Prestige Hospitality Ventures gets SEBI nod for ₹2,700cr IPO
What's the story
Prestige Hospitality Ventures Limited has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). The proposed IPO consists of a fresh issue of equity shares worth up to ₹1,700 crore, and an offer for sale of equity shares worth up to ₹1,000 crore. The offer for sale includes equity shares by Prestige Estates Projects Limited (promoter selling shareholder).
Fund allocation
Plans to use net proceeds for various purposes
Prestige Hospitality Ventures plans to use the net proceeds from the IPO for various purposes. These include partial or full repayment/pre-payment of borrowings worth ₹397.248 crore taken by the company and its material subsidiaries, Sai Chakra Hotels Private Limited and Northland Holding Company Private Limited. The company also intends to use these funds for inorganic growth through unidentified acquisitions, strategic initiatives, and general corporate purposes.
Business overview
About the company
Prestige Hospitality Ventures is a hospitality asset owner and developer, focusing on luxury, upper upscale, as well as midscale hospitality assets in India. The company is part of the Prestige Group, which has 38 years of experience in real estate development. As of December 31, 2024, Prestige Hospitality's portfolio includes seven operational hospitality assets with 1,445 keys (1,255 operational keys) and one under-renovation asset with 190 keys.
Financial performance
Revenue from hospitality services
The company's revenue from hospitality services rose to ₹662.681 crore in the nine months ending December 31, 2024, up from ₹560.343 crore in the same period last year. For FY24, the revenue was ₹795.695 crore as compared to ₹636.169 crore in FY23 and ₹191.715 crore in FY22. This reflects a CAGR of 103.73% between FY22 and FY24, highlighting the company's strong financial performance over recent years.