HBI Staff | Hyderabad 
According to CNBC TV 18, Bengaluru-based Prestige Estates Projects aims to raise approximately INR 2,000-3,000 crore through an IPO for its hospitality business. The company has enlisted JM Financial, JP Morgan, and CLSA as investment bankers for the offering.
Sources have informed that Prestige Estates expects a valuation of around INR 17,000-20,000 crore for its hospitality division. The company previously indicated that the demerger of its hospitality business is on track, with an initial stake sale anticipated in 2024.
Prestige Estates told, “Raising capital is a standard activity in the real estate business. We are considering raising funds for several projects, including hospitality ventures, and are in the process of determining the future course of action.”
The company plans to double its hospitality portfolio over the next three to four years, with a total investment of INR 1,700 crore. Currently, Prestige Estates manages 1,849 keys of hospitality assets across India and is evaluating the monetization of its hospitality portfolio to unlock value.
This development is expected to reduce gross debt by INR 900 crore and alleviate some cash flow stress associated with the INR 1,700 crore balance capex in the hospitality segment.
Shares of Prestige Estates Projects Ltd. closed nearly 2% lower at INR 1,840 on the NSE. The stock has risen 55% so far in 2024.
SOURCE: CNBC-TV18
