Aditya Birla Private Equity in talks to pick 6 pc in Adlabs Imagica for Rs 100 crore
Some people familiar with the developments are saying that the Aditya Birla Private Equity is in talks for the possible purchase of a 6 per cent stake in Adlabs Imagica. This will result the in the valuation of the company to be at Rs1, 667 crore. The deal is a part of a sale of shares ahead of a public offer, for which Adlabs Imagica has appointed investment banks Deutsche India Equities, Kotak Mahindra Capital Company and Centrum Capital as managers. This offer will be the first public offer by a theme park company in India.
A person says that the company is planning to raise around Rs400-500 crore from the planned IPO. India’s second largest equity fund with more than $ 2 billion of assets under management purchased a minority stake in the theme park for Rs150 crore last years.
The park is situated on the Mumbai-Pune expressway, about 70 km from India’s commercial capital was developed by the film producer and director Manmohan Shetty, who has invested Rs 1,200 crore of his own money in it. The park opened in April 2013. The company is planning to focus on other cities as well.
Mr. Bharat Banka, chief executive officer of Aditya Birla Private Equity, and Mr. Kapil Bagla, chief financial officer of Adlabs Imagica, declined to comment on this issue. Mr. Shetty decided to build the theme park in Khopoli after selling his cinema hall chain and film processing unit Adlabs to Reliance Media-Works in 2005.
The company has 300 acres area out of which 110 have been developed to shelter for more than 21 rides. The capital collected will be used to develop a water park and a hotel. The amusement and theme park industry of India is just two decades old and comparatively new if you compare with the market of Us and Europe.
As per the report the size of the Indian amusement park business is calculated around Rs 4,000 crore. The amusement and theme park industry is deemed to be worth Rs 10,000 crore in India by 2020.
A report also mentioned that this catches the attention from the overseas companies. The leaders in the entertainment parks and attractions like Universal Studios, Disney, Sony and Ripley Entertainment are mulling over investments of billions of dollars in India considering the vast potential in this region.
Mr. Vikram Hosangady, partner and head of private equity transactions advisory services at KPMG India, says that entertainment as the theme has investors because it is connected to the younger demographic and consumerism. The shortage of assets in India and the key is to have good packages, attractive pricing and value for money.
Source: The Economic Times
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