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Prestige Estates Backs Subsidiary with ₹750 Crore Guarantee
26 Sep
Summary
- Prestige Estates issued a ₹750 crore guarantee for a subsidiary loan.
- The guarantee is for Prestige Falcon Mumbai Realty Private Ltd.
- Prestige Hospitality Ventures withdrew its IPO filing.
Prestige Estates Projects has issued a corporate guarantee, capped at ₹750 crore, in favor of ICICI Bank. This guarantee supports a loan facility secured by its subsidiary, Prestige Falcon Mumbai Realty Private Ltd. The transaction, dated September 25, 2026, complies with corporate regulations and is conducted on an arm's-length basis, with no direct interest from the promoter group.
This corporate guarantee represents a contingent liability for Prestige Estates, but it is not expected to cause an immediate impact as the subsidiary is part of the consolidated group. This disclosure was made in accordance with SEBI listing regulations. In a separate development, Prestige Hospitality Ventures Ltd. (PHVL) has withdrawn its Draft Red Herring Prospectus (DRHP) filed on April 24, 2025, for its intended initial public offering.