Fresh DRHP possible in future, subject to favourable market conditions

New Delhi, Sep 26: Real estate company Prestige Estates announced on Friday that it has put on hold its proposal to take its hotel business public, pointing to unpredictable market conditions as the reason.

The company's subsidiary, Prestige Hospitality Ventures Limited (PHVL), had submitted a Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) on April 24, 2025.

In a filing with regulators on Friday, Prestige Estates disclosed that PHVL's board of directors had opted to "withdraw the DRHP on account of strategic considerations and uncertain market conditions."

The company noted that PHVL could look at submitting a new DRHP to SEBI down the line for an equity share IPO, contingent on favourable market conditions, obtaining the necessary clearances, and other relevant factors.

This development comes after Prestige Estates revealed in August that Canadian investment firm CPPIB planned to invest as much as Rs 3,000 crore into its hospitality division.

The company had earlier disclosed that a board sub-committee had cleared the signing of a binding framework agreement involving the company, CPP Investment Board Private Holdings Inc. (CPPIB) and Prestige Hospitality Ventures Limited.

Under this arrangement, CPPIB intends to invest up to Rs 3,000 crore in PHVL across several tranches, the company had stated.

Bengaluru-headquartered Prestige Estates ranks among the country's top real estate developers.