Imagicaaworld Entertainment Limited , a prominent player in the entertainment industry, has announced a strategic move to expand its footprint in Gujarat. The company's board has approved the acquisition of Malpani Parks Ahmedabad Private Limited (MPAPL) for a cash consideration of Rs 50.00 crore, subject to shareholder approval.

Acquisition Details

The acquisition involves purchasing 100% equity shares of MPAPL from Malpani Parks Private Limited (MPPL), a promoter of Imagicaaworld Entertainment. This related party transaction is set to be conducted at arm's length, based on an independent valuation report.

About the Target Company

MPAPL, incorporated on July 9, 2021, is yet to commence commercial operations. The company intends to develop a water park or entertainment park in Ahmedabad, Gujarat. For the financial year ended March 31, 2025, MPAPL reported a minimal turnover of Rs 19,786 in other income.

Strategic Rationale

Dhimant Bakshi, CEO of Imagicaaworld Entertainment, stated, "This acquisition aligns perfectly with our expansion strategy. It will accelerate our geographical expansion in Gujarat by providing us with strategic land parcels ideal for developing a larger water park project in the first phase."

Financial Implications

The transaction involves two key components:

1. Acquisition of 10,000 equity shares (100% stake) in MPAPL for Rs 50.00 crore.
2. Post-acquisition, Imagicaaworld plans to infuse up to Rs 30.00 crore as loans to MPAPL.

The total transaction value is capped at Rs 75.00 crore, demonstrating Imagicaaworld's significant commitment to this expansion.

Timeline and Approvals

The acquisition is expected to be completed by March 31, 2026, subject to various conditions:

• Shareholder approval
• Regulatory and statutory approvals
• Fulfillment of conditions precedent agreed between the parties

Market Impact

This move is expected to strengthen Imagicaaworld's presence in Gujarat, a state where the company already has operations. The acquisition of ready-to-develop land with clear titles is seen as a strategic advantage for rapid expansion in the region.

Governance and Transparency

The transaction has been approved by Imagicaaworld's Audit Committee and Board of Directors. As a material related party transaction, it will be subject to shareholder approval, ensuring transparency and adherence to corporate governance norms.

Imagicaaworld Entertainment's decision to acquire MPAPL represents a significant step in its growth strategy, potentially enhancing its position in the competitive entertainment and leisure industry in India.

Imagicaaworld Entertainment Limited , a leading player in the Indian amusement and theme park industry, has reported mixed operational performance for the first quarter. The company, which operates a diverse portfolio of entertainment parks across western India, faced some challenges but also made strides in expansion during the period.

Financial Performance

The company's revenue for Q1 declined by 19.5% to Rs 148.10 crores, compared to Rs 184.00 crores in the same quarter last year. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a more significant drop of 34.1%, falling to Rs 72.60 crores from Rs 110.10 crores in the previous year's Q1. Consequently, EBITDA margins compressed to 49.0% from 59.9% year-over-year.

Operational Metrics

Footfalls across Imagicaaworld's parks decreased marginally by 0.3% to 9.5 lakhs during the quarter. However, the Average Revenue Per User (ARPU) remained relatively stable at Rs 1,360, compared to Rs 1,364 in the same period last year, indicating the company's ability to maintain pricing power despite the slight dip in visitor numbers.

Expansion and New Developments

A significant highlight for Imagicaaworld was the launch of Aqua Imagicaa Water Park in Indore, Madhya Pradesh, in March. This new addition to the company's portfolio is strategically located between Indore and Ujjain, spanning 18 acres and featuring over 20 water rides and attractions, along with three multi-cuisine restaurants.

Current Portfolio and Future Plans

Imagicaaworld now boasts a portfolio of 8 parks across 5 locations in western India, covering approximately 220 acres. The company's assets include:

1. Imagicaa Theme Park and Water Park in Khopoli
2. Novotel Imagicaa, a 5-star deluxe hotel in Khopoli
3. Wet'n Joy Water Park and Amusement Park in Lonavala
4. Wet'n Joy Water Park in Shirdi
5. Sai Teerth Devotional Park in Shirdi
6. Aqua Imagicaa Water Park in Surat
7. The newly launched Aqua Imagicaa Water Park in Indore

Looking ahead, Imagicaaworld has outlined ambitious expansion plans. A key project in the pipeline is a new entertainment hub at the Sabarmati Riverfront in Ahmedabad, to be developed under a Public-Private Partnership (PPP) model. The company won the bid for this project in March of the previous year, and ground-breaking is expected in the second half of the current year, pending environmental clearances.

Management Commentary

Jai Malpani, Managing Director of Imagicaaworld Entertainment Limited, commented on the results and future outlook: "While we faced some challenges in Q1, we remain committed to our growth strategy. The launch of our new water park in Indore marks an important step in our expansion plans. We are excited about the Sabarmati Riverfront project and continue to explore opportunities in other key markets across India."

Industry Outlook

Despite the short-term headwinds, the Indian amusement and theme park industry is poised for growth. According to industry reports, the sector is expected to grow at a healthy 9-11% CAGR from FY2024 to FY2030, driven by rising domestic tourism, increasing disposable incomes, and evolving consumer behaviors.

As Imagicaaworld Entertainment continues to navigate the current landscape, its focus on geographical expansion and diversification of offerings positions it well to capitalize on the long-term growth potential of the Indian entertainment park industry.