PRESTIGE

to invest Rs 1,625 crore in hospitality arm via rights issue

Since the company is a wholly-owned subsidiary, the transaction is categorized as a related-party deal, but Prestige Estates has stated it will be conducted at arm’s length.

Estates Projects Ltd has approved an investment of up to Rs 1,625.04 crore in its wholly-owned subsidiary, Prestige Hospitality Ventures Ltd (PHVL), through a rights issue. The investment, which will be carried out in one or more tranches, aims to strengthen PHVL’s hospitality business, which focuses on developing and operating hospitality ***** incorporated in 2017, reported a turnover of Rs 4,161 crore for the financial year ended March 31, 2024. Since the company is a wholly-owned subsidiary, the transaction is categorized as a related-party deal, but Prestige Estates has stated it will be conducted at arm’s length. The company also clarified that its promoters have no financial stake in the transaction.