Prestige Group to launch Rs 4000 crore IPO for hospitality business

Bengaluru-based Prestige group, a major player in India’s real estate sector is preparing to list its hospitality division through a Rs 4000 crore Initial Public Offering (IPO), according to sources. The company’s board has approved the plan, and the Draft Red Herring Prospectus (DRHP) is in its final stages. The IPO will include both a fresh issue and an offer for sale. Proceeds from the primary issue will be used to develop new hotel properties and reduce debt. 

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Prestige is working with four investment banks, including Kotak Mahindra Capital and JM Financial, and the DRHP is expected to be filed by the end of April or early May. Although the company has not officially commented, the move comes amid market volatility, where sectors like real estate and hospitality are being viewed as more stable investment options. 

Prestige’s hotel portfolio includes prominent properties such as Sheraton Grand and JW Marriott in Bengaluru, along with brands like Hilton’s  Conrad and Marriott’s Moxy. The group also owns resorts and business hotels in other cities like Kochi. 

The hospitality sector is attracting strong investor interest. Other players like Leela Brigade, Juniper Hotels, and Park Hotels have also tapped in the IPO market recently, with mixed post-IPO performances. This signals a growing trend of hospitality businesses seeking capital from public markets.