Prestige Hospitality withdraws IPO, secures private investment from CPP Investments

Prestige Estates Projects has withdrawn the proposed $282 million initial public offering (IPO) for its hospitality subsidiary, Prestige Hospitality Ventures Limited (PHVL). The company cited strategic considerations and uncertain market conditions for the decision to shelf the Draft Red Herring Prospectus (DRHP) previously filed with the Securities and Exchange Board of India.

In place of the IPO, Prestige is pursuing a private investment from CPP Investments. The Canadian firm has agreed to invest up to $313 million (approximately Rs 3,000 crore) for a stake of up to 28 percent in the hospitality arm. This transaction is expected to be structured across multiple tranches and includes both primary and secondary investments.

At the maximum investment level, the deal implies an equity value of roughly $1.12 billion for PHVL. While the company has paused its public market plans, it noted that a new IPO could be considered in the future if market conditions become more favorable.