Share news: This company will invest ₹1625 crore in subsidiary through rights issue

Prestige Estates Projects Limited on Friday informed that the company has announced an investment in the equity shares of its wholly-owned subsidiary Prestige Hospitality Ventures Limited. The company has approved an investment of up to Rs 1,625.04 crore in its wholly-owned subsidiary Prestige Hospitality Ventures Limited (PHVL) through a rights issue.

The company said that this investment will be made in one or more installments, aimed at strengthening PHVL's hospitality business, which focuses on the development and operation of hospitality projects.

Turnover of Rs 4,161 crore Incorporated in 2017, PHVL recorded 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 has been categorized as a related-party deal, but Prestige Estates has said that the transaction will be done privately. The company also clarified that its promoters have no financial stake in this transaction. The rights issue is expected to be completed by March 31, 2025, in which shares will be purchased in cash. Prestige Estates has assured that the move will not change the ownership structure of PHVL, and the hospitality unit will remain fully owned by the parent company.

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