Hyderabad-based hospitality and entertainment firm Country Club India Ltd is looking to bring in a strategic investor to fund expansion plans, according a news report by The Hindu Business Line, citing its promoter.
Y Rajeeve Reddy, chairman and managing director of Country Club—which has over 90 properties across India and overseas—told the paper that the promoters are open to diluting their equity stake in the company to around 60 per cent.
As on December 31, 2013, the promoters held a 73.8 per cent equity stake. Given the current market price, the company can raise around Rs 26 crore by issuing fresh shares while limiting promoter’s stake dilution to 60 per cent, as per VCCircle estimates.
Currently, Country Club—a family clubbing and holiday services company—has presence in Dubai, Oman, Qatar, Sri Lanka, Africa, Malaysia, Thailand and the UK, apart from India.
Presently, it has 22 fitness centres in cities like Jaipur, Mumbai, Pune, Delhi, Chandigarh, Kolkata, Bangalore, Chennai, Dubai and Abu Dhabi and has plans to take this number to 100 over the next couple of years, he added.
The company is aiming to double its membership base from 4 lakh in the next three-four years and has shortlisted a few properties in London for acquisition so as to cater to the expanded member base.
As part of the expansion, it is also looking into possibilities of selling some of the non-core assets to raise fund.
During the quarter ended on December 31, 2013, net profit of the company grew 9.2 per cent to Rs 14.2 crore with sales rose 6.5 per cent to Rs 128.4 crore, over the year-ago period.
Its peer Sterling Holiday Resorts is being merged with Thomas Cook. Country Club trades at a significant discount compared with industry peers despite being a profitable venture.
(Edited by Joby Puthuparampil Johnson)