Mumbai, September 29: Theme park operator Imagicaaworld Entertainment has converted its outstanding preferential warrants into equity shares, raising capital of ₹ 129.45 crore. The promoters executed the conversion at an issue price of ₹ 67.50 per share, a premium of about 43% of the current trading price.
The company had issued a total of 2.34 crore warrants at an issue price of ₹73.50 per warrant, with 25% of the total consideration received upfront. Now that the company has received the balance, none remain outstanding and are now converted into equity.
With this, the promoter group led by Malpani Parks has shown long-term commitment, accepting the shares at ₹67.50 despite Imagicaaworld’s shares trading at around ₹50 per share. Following the transaction, Malpani’s voting share in Imagicaaworld has now risen to 73.95% from 70.85%.
This is expected to strengthen Imagicaaworld’s balance sheet, allowing it to plan for setting up new entertainment formats while supporting its operational capital requirements at its theme parks.
“The full conversion of the warrants is a strong reflection of the confidence that promoter group and investors have in Imagicaaworld’s long-term growth journey. With the receipt of the balance amount, we have further strengthened our financial position. We remain committed to deploying this capital towards initiatives that can strengthen our portfolio and create sustainable long-term value for all stakeholders.” Jai Malpani, Managing Director, Imagicaaworld Entertainment Limited said in a press release.
“The additional capital provides us with greater flexibility as well as firepower to execute our growth plans and fulfil our existing capital commitments. We see significant opportunities to deepen the scale and engagement of our existing parks through new attractions and experiences, while expanding our footprint into new geographies. At the same time, indoor entertainment represents an important new growth avenue for Imagicaaworld, offering the opportunity to build a scalable presence across key urban markets. We will remain focused on executing these initiatives effectively while continuing to deliver compelling experiences for our guests.”Dhimant Bakshi, Chief Executive Officer, Imagicaaworld Entertainment Limited, added.
Following the news, Imagicaaworld’s shares rose up to ₹51, increasing about 0.3% following the announcement.
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