Prestige Estates issued a guarantee of up to Rs 750 crore. |
Mumbai: has issued a corporate guarantee of up to Rs 750 crore in favour of ICICI Bank to secure a loan facility for its subsidiary, Prestige Falcon Mumbai Realty Private Ltd.
The company disclosed the guarantee in a regulatory filing dated September 25. The arrangement supports the borrowing being availed by the Mumbai subsidiary, with Prestige Estates providing the guarantee to the lender.
Guarantee Terms
said the transaction was being undertaken on an arm’s-length basis and complied with applicable provisions of the Companies Act, 2013 and SEBI’s listing regulations.
According to the disclosure, the promoter and promoter group have no interest in the transaction.
Prestige Estates classified the corporate guarantee as a contingent liability. It said there was no immediate impact on the company because the guarantee had been extended on behalf of a subsidiary within its consolidated group.
The filing was submitted under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Hospitality IPO Withdrawn
In a separate development, Prestige Estates said its subsidiary, Prestige Hospitality Ventures Ltd, had withdrawn the draft papers for its proposed initial public offering.
The hospitality subsidiary’s board decided to withdraw the Draft Red Herring Prospectus on September 25, 2026, citing strategic considerations and uncertain market conditions.
The DRHP, dated April 24, 2025, had been filed with the Securities and Exchange Board of India, the National Stock Exchange of India and BSE.
The proposed offering concerned equity shares of Prestige Hospitality Ventures. Its withdrawal brings that proposed listing process to a halt following the board’s decision.
Separate Corporate Developments
The two disclosures relate to subsidiaries and distinct corporate actions within the Prestige group.
The ₹750 crore guarantee concerns the ICICI Bank loan facility for Prestige Falcon Mumbai Realty, while the withdrawal concerns Prestige Hospitality Ventures’ proposed equity offering.
The company disclosed the guarantee and the decision to withdraw the hospitality subsidiary’s IPO papers in separate exchange filings.
