Prestige Estates shares hit a day high of Rs 1,464 on 30 September as a Canadian pension fund agreed to invest Rs 3,000 crore in its hotel arm.

In an exchange filing on 29 September, Prestige Estates Projects Limited said CPP Investment Board Private Holdings (4) Inc., or CPPIB, will invest up to Rs 3,000 crore in Prestige Hospitality Ventures Limited.

That is the Bengaluru-based developer’s hotel business, and CPPIB will end up with around 27% of it. The hotel arm owns luxury and premium hotels in major Indian cities.

It has more planned, with projects lined up in Bengaluru, Chennai, Goa, Delhi, Mumbai and Hyderabad.

The companies said most of the capital will support that growth. The money will not arrive all at once. It comes in three instalments.

In the first, CPPIB pays Rs 950 crore to buy existing shares from Prestige and puts Rs 550 crore of new money into the hotel company.

The second and third installments are Rs 750 crore each. Both go straight into the hotel company.

The first installment should close within 60 days, once approvals come through. One of them is from the Competition Commission of India.

CPPIB will also get a vote on certain key decisions. After five years, it can exit through a stock market listing of the hotel company, or by asking Prestige or the hotel company to buy back its stake.

CPPIB has no link to the Prestige promoters. So this is not a related-party deal. The deal follows a change of plan.

The hotel arm had filed draft IPO papers in April 2025 to raise up to Rs 2,700 crore. In a filing on 26 September, Prestige said its board had decided to withdraw them, citing uncertain market conditions.

Separately, Prestige said on 29 September that it had delivered two housing projects in Hyderabad, adding up to 1,047 homes.

They are Prestige Clairemont in Kokapet and Bellagio at The Prestige City in Rajendra Nagar.

At 11:08 am, shares were trading up by 2.96% at Rs 1,459.40 on the NSE, against a previous close of Rs 1,417.50. The stock is still down 9.01% so far this year.

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