Aditya Birla Private Equity In Talks To Acquire 6% Stake In Adlabs Imagica

According to media reports, Aditya Birla Private Equity is in talks for buying 6% stake in Adlabs Imagica, worth Rs 100 crore. The move by Aditya Birla Private Equity comes in the wake of Adlabs Imagica’s public offering, aimed at raising a fund of Rs 400-500 crore for the company. 

The Aditya Birla Private Equity fund is likely to acquire 6% stake in Adlabs Imagica, worth Rs 100 crore, according to media reports. That values Adlabs Imagica, the largest amusement park in India, at about Rs 1665 crore. The company plans to utilise the raised fund to set up a water park and a hotel at the current location.

Adlabs Imagica is also planning to enter the capital market through its upcoming public issue. The deal talks by Aditya Birla are just ahead of the public offer by the company to raise a fund of Rs 400-500 crore. The issue proceeds will be invested to develop more rides and other services into the amusement park. For the said public issue, the company is close to appointing investment banks viz. Kotak Mahindra, Deutsche India Equities and Centrum Capital as managers.

In September 2013, Adlabs Imagica also gained investment interests from one of the largest private equity fund investor ICICI Ventures, which invested Rs 150 crore, taking undisclosed stake percentage in the company. The raised fund will be used in line with its expansion plans. Adlabs Imagica is likely to open a second theme park in Hyderabad and further expand to Delhi and Gujarat in the coming years.

Adlabs Imagica theme park is situated in a 300 acre area, on the Mumbai-Pune Expressway. Its promoter, Manmohan Shetty initially invested Rs 1200 crore to set up the park. The park was opened for public in April 2013. The park has 21 rides and attractions and can accommodate around 20000 visitors on a daily basis.

Meanwhile, another amusement company, Wonderla Holidays has already filed DRHP to raise an amount of about Rs 178 crore for setting up of an amusement park in Hyderabad. The Bangalore based amusement park company values at about Rs 694 crore.