Prestige Estates Projects has issued a corporate guarantee of up to ₹750 crore to secure a loan being availed by its subsidiary, Prestige Falcon Mumbai Realty Private Ltd, the company said in a regulatory filing on September 25. The guarantee has been provided in favour of ICICI Bank for the loan facility availed by the subsidiary.
According to the filing, the guarantee is being provided on an arm’s-length basis and in compliance with applicable provisions of the Companies Act, 2013 and SEBI listing regulations. The company said the promoter and promoter group do not have any interest in the transaction.
Prestige Estates said the corporate guarantee represents a contingent liability for the company. Since the guarantee has been provided on behalf of a subsidiary that forms part of the consolidated group, there is no immediate impact on the company, it said.
The disclosure was made under Regulation 30 of the SEBI Regulations, 2015. Separately, Prestige Estates said its subsidiary Prestige Hospitality Ventures Ltd has withdrawn its Draft Red Herring Prospectus filed with the Securities and Exchange Board of India for a proposed initial public offering of its equity shares.
PHVL had filed the DRHP dated April 24, 2025 with SEBI, the National Stock Exchange of India and BSE, the company said in a separate exchange filing. The board of directors of PHVL decided to withdraw the DRHP on September 25, 2026, citing strategic considerations and uncertain market conditions.
The withdrawal relates to the proposed IPO and is separate from the corporate guarantee disclosed by Prestige Estates for the Mumbai-based subsidiary.