₹2,700 Crore Hospitality IPO Goes Off The Table, Prestige Group Cites Tough Market Conditions

Mumbai: Prestige Estates Projects Ltd has withdrawn plans for a ₹2,700 crore initial public offering (IPO) of its hospitality subsidiary, citing uncertain market conditions and strategic considerations.

Prestige Hospitality Ventures Ltd (PHVL) had filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) in April last year. The proposed public issue would have raised up to ₹2,700 crore.

In a regulatory filing on Friday, Prestige Estates said PHVL’s board had decided to withdraw the draft IPO papers. The decision ends the current filing process but leaves open the possibility of a future listing.

The hospitality arm may submit a fresh draft prospectus to SEBI if market conditions become suitable, the necessary approvals are obtained and other considerations support the move. The company has not announced a new timetable.

The withdrawal comes as companies seeking public listings weigh investor appetite and market volatility. For PHVL, the board’s decision means its proposed share sale will wait while it reviews the right time to approach the market.

CPPIB Investment Plan

The IPO decision follows a separate funding announcement for the hotel business. In August, Prestige Estates said Canada-based investment firm CPPIB had agreed to invest up to ₹3,000 crore in PHVL.

The companies entered into a binding framework agreement under which CPPIB proposed to make the investment in multiple tranches. Prestige has not linked the withdrawal of the IPO papers to that agreement in its latest filing.

Prestige’s Hotel Business

Bengaluru-based Prestige Estates develops residential properties, offices, shopping malls and hotels across major Indian cities. PHVL houses its hospitality business, which the group had sought to bring to the public market through the proposed IPO.

For now, investors will have to wait for a fresh filing to learn whether Prestige revives the hotel listing plan and what size or structure any future issue may take.