City Pulse Multiventures Limited , a cinema theatre operator in Gujarat, is set to make a strategic move into the digital content space by acquiring Matrubharti Technologies Private Limited, a regional language digital content platform. The acquisition, valued at approximately Rs. 153.00 crore, will be executed through a share swap arrangement.

Key Details of the Acquisition

• City Pulse Multiventures will issue 4,275,900 equity shares at Rs. 358.00 per share to Matrubharti Technologies' shareholders.
• The share swap ratio is set at 1:12, meaning Matrubharti shareholders will receive 12 shares of City Pulse for every 1 share held in Matrubharti.
• Post-acquisition, City Pulse will gain 100% ownership of Matrubharti Technologies.
• The deal is subject to shareholder approval at an Extraordinary General Meeting scheduled for August 8, 2025.

About Matrubharti Technologies

Matrubharti Technologies is a vibrant digital platform focusing on regional language content. Key highlights include:

• Over 100,000 authors on the platform
• 3 million active readers
• A library of more than 1 million stories
• Achieved a turnover of Rs. 8,85,766 in the financial year 2024-25

Strategic Rationale

The acquisition aligns with City Pulse Multiventures' strategy to expand into the digital content space through forward integration. This move is particularly significant given the increasing popularity of OTT platforms and digital content consumption.

Impact on Shareholding

• City Pulse's authorized share capital will increase from Rs. 11.00 crore to Rs. 16.00 crore.
• Post-acquisition, the promoter shareholding in City Pulse will rise from 11.98% to 23.57%.

Management Commentary

Arpit Rajnikant Mehta, Managing Director of City Pulse Multiventures, stated, "The acquisition of Matrubharti Technologies marks a significant step in our digital expansion strategy. By integrating Matrubharti's robust platform and engaged community, we aim to establish a strong presence in the rapidly growing regional language digital content market."

Financial and Regulatory Aspects

• The share price of Rs. 358.00 is based on a valuation report by an independent registered valuer.
• The preferential allotment is subject to regulatory approvals and compliance with SEBI regulations.
• Shares issued will be subject to a lock-in period as per SEBI guidelines.

This acquisition represents a significant pivot for City Pulse Multiventures, potentially transforming it from a regional cinema operator to a diverse media company with a strong digital presence in regional language content.

City Pulse Multiventures Limited , a cinema theatre operator, is set to make a significant leap into the digital content space with the proposed acquisition of Matrubharti Technologies Private Limited, a regional language digital content platform. The company plans to issue 4.28 million equity shares in a share swap deal to acquire a 100% stake in Matrubharti, subject to shareholder approval at an Extraordinary General Meeting scheduled for August 8, 2025.

Strategic Expansion into Digital Content

The acquisition marks City Pulse's strategic move to expand its cinema business through forward integration into the rapidly growing digital content market. Matrubharti, a startup founded in 2017, has established itself as a vibrant storytelling platform with over 100,000 authors, 3 million readers, and more than 1 million stories in regional languages.

Share Swap Details

Under the proposed deal, City Pulse will issue 12 of its shares for every 1 share of Matrubharti, valuing each City Pulse share at Rs. 358.00. This share swap arrangement will result in the issuance of 4,275,900 new equity shares by City Pulse, subject to fractional adjustments.

Financial and Shareholding Impact

The acquisition is expected to significantly alter City Pulse's shareholding structure:

Rationale for Acquisition

City Pulse's management cites several strategic reasons for the acquisition:

1. Market Dominance: Immediate entry into the growing regional language digital content market.
2. Engaged Audience: Access to Matrubharti's established user base and content library.
3. Synergistic Growth: Opportunities for cross-promotion and expanded monetization strategies.
4. Value Creation: Positioning as a dominant player in a high-growth segment.

Corporate Actions

To facilitate this acquisition, City Pulse also proposes to increase its authorized share capital from Rs. 11.00 crores to Rs. 16.00 crores. This will be put to vote at the upcoming Extraordinary General Meeting.

Regulatory Compliance

The company has assured compliance with SEBI regulations, including obtaining necessary valuations from an independent registered valuer. The issue price of Rs. 358.00 per share has been determined based on the SEBI (ICDR) Regulations, 2018.

Looking Ahead

This acquisition represents a significant pivot for City Pulse Multiventures, potentially transforming it from a traditional cinema operator to a multi-faceted entertainment and content company. The success of this integration will be closely watched by investors and industry observers alike, as it could set a precedent for similar moves in the entertainment sector.

Shareholders will have the opportunity to vote on this proposal at the Extraordinary General Meeting, where the future direction of City Pulse Multiventures will be decided.