Prestige Group withdraws ₹2,700 crore IPO plan for hospitality arm amid uncertain market conditions

The company informs that the board of directors decided to "withdraw the DRHP on account of strategic considerations and uncertain market conditions"

Realty firm Prestige Estates has withdrawn its IPO plan for its hotel business amid uncertain market conditions. The company initially aimed to raise Rs 2,700 crore through this public issue. A subsidiary, Prestige Hospitality Ventures Ltd, had filed a Draft Red Herring Prospectus with Sebi last year. The firm may consider reapplying for an IPO in the future based on market dynamics and necessary approvals.

Mumbai: Prestige Estates Projects Ltd has withdrawn plans for a ₹2,700 crore initial public offering (IPO) of its hospitality subsidiary, citing uncertain market conditions and strategic considerations.Prestige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.Prestige Group's Hospitality Arm To Launch IPO, Aims To Raise ₹2,700 Crore 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 PlanThe 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.Prestige Estates Reports 577% Net Profit Growth To ₹291.8 Crore In Q4 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 BusinessBengaluru-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.