Prestige Hospitality Ventures Withdraws ₹2,700 Crore DRHP As Market Conditions Remain Uncertain

Prestige Hospitality Ventures Ltd (PHVL), the hospitality arm of Prestige Estates Projects, has withdrawn the draft red herring prospectus (DRHP) for its proposed ₹2,700 crore initial public offering (IPO). The company’s board approved the withdrawal on September 25, citing strategic considerations and uncertain market conditions.

The Prestige Hospitality Ventures IPO was originally proposed to raise up to ₹2,700 crore through a combination of a fresh issue of up to ₹1,700 crore and an offer for sale (OFS) of up to ₹1,000 crore by promoter Prestige Estates Projects. The company had filed its DRHP with the Securities and Exchange Board of India (SEBI), NSE and BSE on April 24, 2025.

The withdrawal puts the current Prestige Hospitality Ventures IPO plan on hold, although the company has kept open the possibility of returning to the primary market. Prestige Estates said PHVL may consider filing a fresh DRHP in the future, subject to suitable market conditions, regulatory approvals and other considerations.

Prestige Hospitality Ventures IPO Withdrawal Details

Prestige Hospitality Ventures' board approved the withdrawal of its DRHP on September 25, 2026, following which the book-running lead managers communicated the decision to SEBI. The DRHP was subsequently withdrawn from the regulator.

The company said the decision was taken “on account of strategic considerations and uncertain market conditions”.

The proposed ₹2,700 crore IPO had two components. The fresh issue was planned at up to ₹1,700 crore, while Prestige Estates Projects, the promoter, was to sell shares worth up to ₹1,000 crore through the OFS component.

The proposed IPO had already received SEBI's observations in August 2025. However, those observations did not mean the issue was required to proceed, and PHVL has now withdrawn the draft offer document.

Under the original IPO plan, the company had proposed using a significant portion of the fresh issue proceeds towards repayment or pre-payment of borrowings and investments in subsidiaries. It had also proposed using funds for potential acquisitions, strategic initiatives and general corporate purposes.

Prestige Hospitality Ventures May File Fresh IPO Papers

The withdrawal does not permanently close the possibility of a Prestige Hospitality Ventures listing. The company has said it may file a fresh DRHP with SEBI in the future if market conditions are suitable and the necessary approvals are obtained. No new IPO filing date or revised issue size has been announced so far.

At the time of its original DRHP filing, Prestige Hospitality Ventures had seven operating hospitality assets with 1,445 keys. Its portfolio also included three ongoing projects with 951 expected keys and nine upcoming properties with a further 1,558 expected keys.

The proposed public issue was intended to provide fresh capital to the hospitality business while also allowing Prestige Estates Projects to monetise part of its holding through the OFS.

The IPO withdrawal also comes after Prestige Estates disclosed in August that Canada-based investment firm CPP Investment Board Pvt Holdings Inc (CPPIB) had proposed to invest up to ₹3,000 crore in PHVL in multiple tranches under a binding framework agreement. Prestige Estates has not linked that investment proposal to the withdrawal of the IPO in its latest disclosure.

For now, the ₹2,700 crore Prestige Hospitality Ventures IPO remains withdrawn, with any future public issue dependent on the company's strategic decisions, market conditions and the regulatory process.

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