Imagicaaworld Entertainment rose 1.18% to Rs 79.96% after the company’s board approved to acquire 100% stake in Malpani Parks Indore (MPIPL) held by Malpani Parks Private for a total consideration of up to Rs 55 crore.
MPIPL currently does not carry any business and is in the process of constructing a water park, Indore Park Project.
The company will acquire 10,000 equity shares of MPIPL for an aggregate consideration of up to Rs 55 crore. Post the acquisition, MPIPL shall become a wholly owned subsidiary of the company.
The acquisition will enable the company to increase its footprint in its line of business. The acquisition also allows consolidation of similar business by entities of the same group which provides for synergy of operations, brand building and rapid increase in scale of business operations.
After MPIPL becomes a wholly owned subsidiary, the company will infuse funds up to Rs 153 crore into MPIPL through intercorporate deposits, loans, or other instruments. This amount will be used to repay unsecured loans, creditors, and liabilities, as well as other utilisations as determined by the board.
The total project cost for Indore Park Project shall not exceed Rs 208 crore. which will include fixed assets at Indore site including underlying land (plus adjacent land for future expansion) overall aggregating around 25 acres, building and roads, rides and other plant and machinery, electrical equipment, furniture and other equipment, including any capital work in progress, as part of the project and land admeasuring approximately 1.5 acres at Shirdi adjacent to existing park operated by company in the name as Sai Teerth for future development.
The said acquisition is expected to be completed on or before 30 September 2024 and is subject to fulfilment of condition precedents as agreed between the parties and receipt of requisite regulatory, statutory, shareholders and other approvals and consents as may be required, stated by the company.
Imagicaaworld Entertainment owns and operates Imagicaa – one of Indias leading holiday destinations and offers a gamut of interesting experiences through its theme park, water parks, snow park and hotel vide brands Imagicaa, Aquamagicaa, Snomagica and Novotel Imagicaa.
The company reported net profit of Rs 4.84 crore in Q4 FY24 as compared with net loss of Rs 159.98 crore in Q4 FY23. Revenue from operations increased 5.1% YoY to Rs 56.63 crore in Q4 FY24.
