Prestige Estates Issues ₹450 Crore Corporate Guarantee for Subsidiary Prestige Projects Private Limited's Bajaj Housing Finance Loan
Prestige Estates Issues ₹450 Crore Corporate Guarantee for Subsidiary Loan
Prestige Estates Projects Limited disclosed to stock exchanges on 19 February 2026 the issuance of a corporate guarantee up to ₹450 crores for its subsidiary Prestige Projects Private Limited's loan from Bajaj Housing Finance Limited. The disclosure was made in compliance with securities regulation requirements governing material corporate actions.
Structure and Terms
The guarantee was provided on arm's length basis with no promoter group interest, representing a contingent liability with no immediate company impact. In this structure, Bajaj Housing Finance, headquartered in Pune, provides finance to developers engaged in the construction of residential and commercial properties. The loan facility is drawn by the subsidiary, while the parent company provides the guarantee as a backup commitment to the lender.
Corporate guarantees of this type are standard within multi-entity developer groups, where a parent company backs financing for operational subsidiaries across different projects or geographies. The arm's length basis ensures the transaction meets regulatory standards for related-party dealings.
Regulatory Compliance
The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided comprehensive details as required under SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 updated on January 30, 2026. These requirements ensure that investors and market participants have visibility into material contingent liabilities arising from corporate guarantees.
Prestige Estates' Financing Strategy
This guarantee is one of several subsidiary financing arrangements disclosed by Prestige Estates in February 2026. The company is actively managing debt across its project portfolio and subsidiary entities as part of its capital deployment strategy. Q3FY26 financial results showed 59% revenue growth to ₹11,294 million, with the company disclosing strategic initiatives including subsidiary acquisitions and QIP fund utilization.
With a market value of over ₹70,000 crore in late 2025, Prestige leads India's listed realty players in H1 FY26 pre-sales, clocking around ₹18,144 crore of bookings in the first half of the year, which is the highest among 28 major listed developers.
About Bajaj Housing Finance
Bajaj Housing Finance is a subsidiary of Bajaj Finance Limited—one of the most diversified NBFCs in the Indian market, catering to more than 119.33 million customers across the country. The company is rated AAA/Stable for its long-term debt programme and A1+ for its short-term debt programme from CRISIL and India Ratings. The lender has established itself as a prominent source of construction and developer financing in India's real estate sector.
Context: Prestige Group's Multi-City Footprint
Prestige Estates has completed over 184 projects spanning a total developed area of over 60.74 million sqft, with another 57 ongoing projects comprising around 59.24 million sqft & 43 upcoming projects totaling 44.11 million sqft. The group operates across South India and has expanded into new markets. On 18 February 2026, the day before this guarantee disclosure, Prestige Estates completed the acquisition of 100% partnership interest in Aspire Spaces Tellapur LLP, with a primary objective of developing a residential project in Tellapur, Hyderabad, with a total saleable area of approximately 10 million square feet.
The guarantee arrangement supports the operational financing needs of subsidiary entities as Prestige continues to deploy capital across its geographic footprint and project pipeline.