Prestige Hotel Ventures files papers for Rs 2,700 cr IPO

Bengaluru: Bengaluru-based realty firm Prestige Group’s Prestige Hotel Ventures Limited has filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India, to raise up to Rs 2,700 crore through an initial public offering (IPO).

The IPO comprises a fresh issue of equity shares aggregating up to Rs 1,700 crore and an offer for sale (OFS) of equity shares aggregating up to Rs 1,000 crore, said the company in a release on Friday. The DRHP was filed on Thursday.

The company may consider a pre-IPO placement aggregating up to Rs 340 crore. If completed, the fresh issue amount will be reduced.

The firm proposes to utilise from the net proceeds an estimated amount of Rs 1,121.28 crore towards full or partial repayment or pre-payment of borrowings availed by the company and material subsidiaries, Sai Chakra Hotels Private Limited and Northland Holding Company Private Limited. The remaining funds will be used to pursue inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.

The proceeds from the OFS will go to Prestige Estates Projects.