Phoenix Mills Limited , a prominent player in the Indian real estate sector, has recently increased its stake in its material subsidiary, Island Star Mall Developers Private Limited (ISMDPL). This strategic move underscores the company's commitment to strengthening its position in the retail real estate market.

Transaction Details

Phoenix Mills acquired 62,66,737 equity shares of ISMDPL from Canada Pension Plan Investment Board (CPP Investments) for a consideration of Rs. 275.73 crore. This acquisition has resulted in a significant shift in the ownership structure of ISMDPL.

Impact and Implications

The increased stake in ISMDPL could potentially allow Phoenix Mills to have greater control over the subsidiary's operations and decision-making processes. This move aligns with Phoenix Mills' strategy to consolidate its position in the retail real estate sector.

Regulatory Compliance

In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Phoenix Mills has duly informed the stock exchanges about this transaction. The company had previously intimated the execution of the Share Purchase Agreement on November 12, 2025, and has now confirmed the completion of the share acquisition.

Transparency Measures

Phoenix Mills has demonstrated its commitment to transparency by promptly disclosing the details of this transaction to its stakeholders. The company has also made this information available on its official website, ensuring easy access for investors and other interested parties.

This strategic move by Phoenix Mills could potentially enhance its market position and may be of interest to investors tracking developments in the Indian real estate and retail sectors. As always, investors are advised to conduct their own research and consider their financial goals before making investment decisions based on corporate actions.

Phoenix Mills has taken a significant step towards gaining complete control of its material subsidiary, Island Star Mall Developers Private Limited (ISMDPL). The company has entered into a Share Purchase Agreement to acquire an additional 44.43% stake in ISMDPL from Canada Pension Plan Investment Board (CPP Investments) for Rs 2,757.36 crores.

Transaction Details

The transaction involves the acquisition of 62,66,737 equity shares of ISMDPL, representing a 44.43% stake. This move is part of a broader framework agreement executed in July 2025, aimed at providing a complete exit to CPP Investments from its 49% equity shareholding in ISMDPL.

Buyback Precedes Share Purchase

Prior to this share purchase agreement, ISMDPL completed a buyback of 2,03,40,909 equity shares from CPP Investments for Rs 895 crores on November 11, 2025. Phoenix Mills did not participate in this buyback, which increased its shareholding in ISMDPL from 51% to 55.57%.

Strategic Implications

Upon completion of these transactions, Phoenix Mills will hold 100% shareholding in ISMDPL, making it a wholly-owned subsidiary. This consolidation is expected to strengthen PML's position in the real estate development sector, particularly in the operation and management of shopping malls.

ISMDPL's Portfolio

ISMDPL operates Phoenix MarketCity Bengaluru and has three subsidiaries managing mall properties:

1. Alyssum Developers Private Limited: Operates Phoenix Mall of Millennium and Millennium Towers in Pune
2. Sparkle One Mall Developers Private Limited
3. Insight Mall Developers Private Limited

Together, these entities form the ISMDPL Platform, which has shown steady growth in recent years.

Financial Performance

ISMDPL's financial performance over the past three years demonstrates consistent growth:

Regulatory Compliance

The transaction has been structured as a related party transaction, with necessary approvals obtained from the Audit Committee, Board, and Shareholders of Phoenix Mills. The company has also obtained a valuation report from Bansi S. Mehta Valuers LLP to determine the fair value of ISMDPL's equity shares.

Conclusion

This strategic move by Phoenix Mills underscores its commitment to strengthening its position in the Indian real estate market, particularly in the shopping mall segment. The full ownership of ISMDPL is expected to provide PML with greater operational control and potential for value creation in its mall portfolio.