Bengaluru-based real estate giant Prestige Group is preparing to take its hospitality arm public with a planned ₹4,000 crore IPO, according to sources quoted by Moneycontrol.

The company’s board has already approved the IPO plan. Work on the Draft Red Herring Prospectus (DRHP) is in its final stages. The IPO will include amix of fresh shares and existing shares (secondary sale).

According to a source, the fresh funds will be used to:

- Develop new hotel properties

- Reduce company debt

Prestige is working with four investment banks, including Kotak Mahindra Capital and JM Financial. The DRHP is expected to be filed by the end of this month or early next month.

The Prestige hospitality portfolio includes top properties such as:

- Sheraton Grand Hotel & Convention Centre, Whitefield

- JW Marriott, Devanahalli

- Conrad by Hilton

- Mulberry Shades, Devanahalli

- Angsana Oasis Resort & Spa, Yelahanka

- Twenty Four, Prestige Tech Park

- Moxy Bengaluru Airport

- The Artiste resort, Kochi

The hospitality sector in India is becoming more attractive to investors. As market volatility increases, real estate and hotels are seen as stable investment options, said another source.

Many other hotel IPOs have hit the market recently:

- The Leela (Brookfield-owned) filed for a ₹5,000 crore IPO

- Brigade Enterprises is planning to list its hotel business

- Ventive raised ₹1,600 crore in December (stock is now 16% above IPO price)

- Juniper Hotels raised ₹1,800 crore in February 2024 (stock is 20% down)

- Apeejay Surrendra Park Hotels raised ₹920 crore in Feb 2024 (stock slightly above IPO price)

- SAMHI Hotels raised ₹1,370 crore in Sep 2023 (stock is up 40%)

As travel and tourism grow, especially among young Indians, the hospitality sector is seeing strong investor interest.