Prestige Estates shares jumped 3% on Tuesday after Canada’s CPPIB agreed to invest up to ₹3,000 crore in its hotel arm PHVL for a 28% stake.

Prestige Estates told the exchange on Monday evening that it has signed a binding framework agreement with CPP Investment Board Pvt Holdings and its own hotel subsidiary, Prestige Hospitality Ventures Limited (PHVL).

Under the deal, CPPIB will invest up to ₹3,000 crore into PHVL, which currently sits as a wholly owned subsidiary of Prestige Estates.

Once the transaction goes through, CPPIB will hold up to a 28% stake in the hotel business. The capital won’t come in one go.

It will be released across multiple tranches, using a mix of primary and secondary investment, with the finer terms still to be locked into definitive agreements.

Prestige has also clarified this isn’t a related party transaction, and that slump sale provisions don’t apply here, nor does the deal fall outside a scheme of arrangement.

There are a few boxes left to tick before this is final. Completion depends on due diligence, signing of the definitive documents, and getting the required regulatory and lender approvals. No firm closing date has been set yet.

For context on scale, PHVL reported a standalone revenue of ₹345.9 crore in the last financial year. That gives investors a sense of what CPPIB is buying into.

The stock itself has had a shaky run lately. It closed at ₹1,595 on Monday, up a modest 0.6%, but was still down 7.5% over the trailing month, which had pushed it into negative territory for the year so far.

Tuesday’s jump marks a sharp reversal from that trend. As of 9:45 am, Prestige Estates is trading at Rs 1,620 up 1.95%.

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