Reported By:
| Edited By: Ashish K Tiwari |Source: DNA |Updated: Mar 17, 2018, 04:36 AM IST
Indore-based Entertainment World Developers (EWDPL) is likely to dilute about 25-30% to raise money from the public market.
The mall developer is believed to be fine-tuning its initial public offering (IPO) plans and is expected to file a draft red herring prospectus with Securities and Exchange Board of India (Sebi) in a few weeks.
The amount to be raised is pegged at anything between Rs 500-600 crore.
Manish Kalani, managing director, EWDPL was not available for comment. Company officials refrained divulging any information on the company’s potential IPO.
Backed by a host of private equity investors, EWDPL also has Ruia-family promoted Phoenix Mills Ltd (PML) holding 42% stake in the firm. It is also not clear if investors will explore possibilities of exiting (fully or partially) once the IPO plans are finalised.
EWDPL develops malls, urban city centres and large-scale residential townships under the brand name Treasure. The group focuses largely on non-metro emerging cities such as Indore, Nanded, Raipur, Jabalpur, Chandigarh and Bhilai.
Its host of realty projects includes 10 hotels (900 guest rooms), to be managed by India Hospitality Corp’s (IHC) wholly-owned hotel subsidiary, Gordon House Estates Pvt Ltd.
IHC has agreed to lease the first phase of EWDPL’s hotel portfolio for up to 30 years, for a minimum lease guarantee rental payment with a revenue sharing agreement over an agreed upon performance threshold.
IHC will employ ‘Gordon House’s newly acquired ‘You’ brand, along with a budget variant of the ‘Gordon House’ brand for branding and managing these hotels. IHC will also have the right to first offer on the second phase of EWDPL’s development pipeline, potentially adding an additional 548 rooms to the company’s portfolio.
