Bengaluru-based Prestige Estates Projects is looking to raise close to ₹2,000-3,000 crore through its initial public offering (IPO) of hospitality business. The company has appointed JM Financial, JP Morgan and CLSA as investment bankers for the public offer.
The company is expecting a valuation of around ₹17,000-20,000 crore for its hospitality business, sources have confirmed to CNBC-TV18.
Earlier, the company had indicated that its hospitality business demerger is on track and the initial stake sale is expected in 2024.
Prestige Estates told CNBC-TV18, "Please note that raising capital is a normal activity in real estate business. We are contemplating to raise funds for few of our projects including hospitality projects and in the process of deciding the future course of action for the same."
The company plans to expand its hospitality portfolio by two-fold over the next three to four years, with a total investment of ₹1,700 crore.
Currently, Prestige Estates manages 1,849 keys of hospitality assets across India.
The company is also evaluating to monetise its hospitality portfolio, which will lead to some value unlocking.
As per reports, the development is expected to knock off ₹900 crore of gross debt from its books and alleviate some of the cash flow stress associated with the ₹1,700 crore balance capex in the hospitality segment.
Shares of Prestige Estates Projects Ltd. settled nearly 2% lower at ₹1,840 apiece on the NSE. The stock has risen 55% in 2024 so far.
The company is expecting a valuation of around ₹17,000-20,000 crore for its hospitality business, sources have confirmed to CNBC-TV18.
Earlier, the company had indicated that its hospitality business demerger is on track and the initial stake sale is expected in 2024.
Prestige Estates told CNBC-TV18, "Please note that raising capital is a normal activity in real estate business. We are contemplating to raise funds for few of our projects including hospitality projects and in the process of deciding the future course of action for the same."
The company plans to expand its hospitality portfolio by two-fold over the next three to four years, with a total investment of ₹1,700 crore.
Currently, Prestige Estates manages 1,849 keys of hospitality assets across India.
The company is also evaluating to monetise its hospitality portfolio, which will lead to some value unlocking.
As per reports, the development is expected to knock off ₹900 crore of gross debt from its books and alleviate some of the cash flow stress associated with the ₹1,700 crore balance capex in the hospitality segment.
Shares of Prestige Estates Projects Ltd. settled nearly 2% lower at ₹1,840 apiece on the NSE. The stock has risen 55% in 2024 so far.
(Edited by : Swapnil Deshpande)
First Published: Jun 12, 2024 3:46 PM IST
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