Prestige Group Prepares for Major IPO in Hospitality Segment
Prestige Group, one of Bengaluru’s leading real estate developers, is preparing to take its hospitality arm public with a proposed initial public offering (IPO) worth Rs 4,000 crore. The company, known for its diversified presence across residential, commercial, retail, and hospitality verticals, has already secured board approval for the IPO. According to sources familiar with the matter, the company is currently in advanced stages of finalizing its draft red herring prospectus (DRHP) and is working with four investment banks, including Kotak Mahindra Capital and JM Financial.
The IPO will include both primary and secondary share components. Funds raised through the primary portion will be deployed for the development of new properties and for reducing the company’s outstanding debt, a source confirmed. The DRHP is expected to be filed either by the end of April or early May. Despite requests, Prestige Group has not issued an official comment on the IPO plans.
Highlights:
IPO size expected to be Rs 4,000 crore, mix of primary and secondary sale.
Funds to be used for new project development and debt reduction.
DRHP likely by April-end or early May.
Kotak Mahindra Capital and JM Financial among the lead bankers.
Real Estate and Hospitality Seen as Safe Bets Amid Global Trade Uncertainty
The timing of the IPO coincides with rising investor interest in the real estate and hospitality sectors. Amid global economic uncertainty driven by tariffs and trade wars initiated by US President Donald Trump, these sectors are being viewed as relatively safer investment avenues. Multiple market sources have confirmed a growing appetite for public issues and qualified institutional placements (QIPs) in these industries.
The real estate and hospitality industries are perceived as more resilient, especially during times of macroeconomic turbulence. With increasing demand for domestic and international travel in India, particularly from younger consumers, hospitality businesses are expected to benefit from structural demand growth, encouraging companies to tap capital markets.
Highlights:
Hospitality and real estate sectors seen as stable amid market volatility.
IPO and QIP interest rising in these sectors.
Trade tensions have shifted investor preference toward defensive plays.
Prestige Group’s Expanding Hospitality Portfolio
Prestige Group’s hospitality portfolio includes a range of high-end properties strategically located across Bengaluru and Kochi. The Sheraton Grand Hotel & Convention Centre in Whitefield and the JW Marriott in Devanahalli are among the group’s most prominent assets. Additional Bengaluru properties include Conrad under the Hilton banner, Mulberry Shades in Devanahalli, Angsana Oasis Resort & Spa in Yelahanka, Twenty Four business hotel at Prestige Tech Park, and Moxy Bengaluru Airport operated under the Marriott brand.
In Kochi, the company owns and operates The Artiste resort, further expanding its geographical presence. These properties reflect the group’s growing focus on premium and business-class segments in India’s major urban and tourist centres.
Highlights:
Portfolio includes Sheraton, JW Marriott, Conrad, Moxy, and Angsana.
Properties located across Bengaluru and Kochi.
Focus on luxury, business, and resort hospitality formats.
Hospitality IPO Momentum Continues in Indian Capital Markets
The Prestige Group’s IPO is the latest in a growing list of hospitality firms turning to capital markets. Investor interest has surged in the sector, driven by rising travel demand and long-term optimism around India’s domestic tourism market. Recent offerings include Juniper Hotels, which operates under the Hyatt brand and raised Rs 1,800 crore in February 2024. However, its stock is currently trading 20 percent below the issue price.
In contrast, Ventive, backed by Blackstone and Panchshil Realty, launched its IPO in December 2023 and has seen its shares appreciate 16 percent above the issue price after raising Rs 1,600 crore. Similarly, Apeejay Surrendra Park Hotels raised Rs 920 crore and is trading slightly above its Rs 155 issue price.
Other recent issuances include Brigade Hotel Ventures and The Leela, the latter of which filed for a Rs 5,000-crore IPO in September 2024. SAMHI Hotels, which went public in September 2023 with a Rs 1,370-crore issue, has seen a 40 percent gain in its share price, reflecting positive investor sentiment in the sector.
Highlights:
Juniper Hotels IPO raised Rs 1,800 crore, stock down 20% from issue price.
Ventive IPO raised Rs 1,600 crore, stock up 16%.
Apeejay Surrendra Park Hotels raised Rs 920 crore, stock slightly above issue price.
SAMHI Hotels up 40% post-IPO; The Leela filed Rs 5,000-crore DRHP.
Sector sees continued momentum amid growing travel and tourism demand.
