Bengaluru’s Prestige Group gearing up to launch Rs 4,000-crore IPO for hospitality arm

Investors are seeing real estate and hospitality sectors as a safe bet amid the global trade war unleashed by US President Donald Trump

Bengaluru-based real estate developer Prestige Group, a leading player in residential, commercial, hospitality and retail segments, is getting ready to take its hotels business public through a Rs 4,000- crore IPO, people aware of the development told Moneycontrol.

“The company’s board has approved the IPO plan and work on the draft red herring prospectus is in advanced stages. The plan is to raise up to Rs 4,000 crore through a mix of primary and secondary share sale,” one of the sources cited above said.

The primary funds will be used for the development of new properties as well as to pare debt, the source said.

“Prestige is working with four investment banks, including Kotak Mahindra Capital and JM Financial. The DRHP is likely to be filed by the end of the month or early next month,” he added.

An email sent to Prestige group had not elicited a response till the time of publication.

Amid extreme market volatility, triggered by US President Donald Trump’s tariffs, investors are seeing industries such as real estate and hospitality as safer bets, another source said.

“We are seeing a strong interest from real estate and hospitality companies for both IPOs and QIPs (qualified institutional placement). These are some of the sectors that are expected to fare better in the near term,” he said.

Prestige Hotels Portfolio

Prestige’s hospitality portfolio includes several marquee properties in Bengaluru such as the Sheraton Grand Hotel & Convention Centre in Whitefield, a JW Marriott hotel in Devanahalli and a property under the Hilton group brand Conrad.

The portfolio also includes Mulberry Shades in Devanahalli, Angsana Oasis Resort & Spa in Yelahanka, Twenty Four business hotel at Prestige Tech Park and a Marriott brand hotel - Moxy Bengaluru Airport - in Bengaluru. It also has a resort, The Artiste, in Kochi.

Hospitality IPOs

The Indian hospitality sector has emerged as an area of interest for investors looking to bet on the growing trend of travel and tourism in the country, particularly among young Indians.

This has led to a bunch of hospitality IPOs in recent years besides several more that have filed offer documents and are waiting to take advantage of this investor interest.

Brookfield owned luxury hotel chain The Leela filed for a Rs 5,000-crore IPO in September and is expected to launch the offer this year.

Another Bengaluru-based real estate developer, Brigade Enterprises, too, has filed papers for its hotels business, Brigade Hotel Ventures.

In December, Blackstone and Panchshil-backed hospitality company Ventive raised Rs 1,600 crore through its IPO. The stock is trading 16 percent over its IPO price.

Juniper Hotels raised Rs 1,800 crore through an IPO in February 2024. Juniper runs seven hotels under the Hyatt brand. The stock is trading 20 percent lower than its IPO price.

Also in February 2024, Apeejay Surrendra Park Hotels raised Rs 920 crore. The hospitality company operates five brands — The Park, The Park Collection, Zone by The Park, Zone Connect by The Park and Stop by Zone. The stock is trading slightly above its issue price of Rs 155.

In September 2023, SAMHI Hotels Ltd raised Rs 1,370 crore. It has a portfolio of 31 hotels. The stock is up 40 percent from its IPO price.