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

The investment is intended to strengthen PHVL’s hospitality business, which focuses on developing hospitality projects. Incorporated in 2017, PHVL reported a turnover of ₹4,161 million for the financial year ended March 31, 2024.

As PHVL is a wholly-owned subsidiary of Prestige Estates, this transaction qualifies as a related party transaction. However, the company has confirmed that it will be conducted on an arm’s length basis. Additionally, the promoters of Prestige Estates Projects Limited have no financial interest in this transaction.

The rights issue subscription is expected to be completed by March 31, 2025, with the shares being purchased in cash. The company has also clarified that this investment will not impact the shareholding structure, and PHVL will continue as a wholly-owned subsidiary.

Prestige Estates Projects Limited remains committed to expanding its hospitality vertical, with this investment reflecting its confidence in PHVL’s growth potential.