Entertainment World to raise Rs 400-500 cr through IPO
Entertainment World Developers (EWD), in which Phoenix Mills holds 40%, is planing to raise Rs 400-500 crore via IPO (initial public offering). EWD focusses on retail, residential projects in tier 2 market.
ICICI Ventures and Manish Kalani are shareholders in EWD. Kotak Mahindra, ICICI Securities and Edelweiss are bankers to the issue.
Entertainment World Developers is a 40% subsidiary of Phoenix Mills and rest 60% is held by Manish Kalani. Phoenix Mills had bought this stake back in 2008, when it really wanted to make an expansion plan into the tier II markets. At that point of time the company was valued little in excess of Rs 1,200 crore. Now we understand from sources that this company Entertainment World Developers is looking to raise about Rs 400-500 crore via an IPO issue.
ICICI Securities, Kotak Mahindra Bank and Edelweiss are acting as bankers to the issue. Apart from Phoenix Mills, ICICI ventures also has made an investment in the company in the form of compulsorily convertible debentures, a reported Rs 227 crore. As we understand before the IPO, ICICI Ventures will be transferring this into an equity holding of 18%. Phoenix Mills’ 40% holding will come down to 31% and therefore both of these together will be holding 49% and the remaining 51% will be Manish Kalani.
The company is looking to dilute about 20-25% via the IPO issue. Currently the company has 25 million sq.ft. under construction. It is very interesting IPO to watch out for couple of reasons. One, when everybody is doing their residential tier I play, this company is focused on retail, focused on the tier II markets.
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