Prestige Estates to Invest ₹1,625 Crore in Hospitality Arm PHVL

31 Mar 2025 , 03:57 PM

Prestige Estates Projects Limited announced investment of up to ₹1,625.04 crore in its wholly owned subsidiary, Prestige Hospitality Ventures Limited (PHVL). The payment will be made through a subscription of a rights issue, which has been approved by the Management Sub-Committee of the Board of Directors.

The capital is to be effected in one or more tranches and is earmarked for bolstering PHVL’s hospitality operations, which involve developing and expanding hospitality projects.

PHVL is a newly incorporated company incorporated in 2017 with a profit of ₹4,161 million turnover for the financial year ending March 31, 2024. As PHVL is a wholly-owned subsidiary of Prestige Estates, the deal qualifies as a related party transaction. However, the company has stated that the agreement will be conducted on an arm’s length basis, maintaining transparency and adherence to regulatory standards.

The promoters of Prestige Estates Projects Limited do not have any financial interest in this transaction, the company also confirmed. All the shares will be bought in cash and the rights issue subscription is likely to be completed by March 31, 2025.

Prestige Estates has assured that this investment will not alter the shareholding structure, and PHVL will continue to operate as a wholly-owned subsidiary. This strategic investment underscores Prestige Estates’ commitment to expanding its hospitality segment, demonstrating confidence in PHVL’s growth potential and long-term business strategy.