Future Ventures is picking up a little over 26% stake in edutainment media firm Amar Chitra Katha Private Limited (ACK) for Rs 37.5 crore, valuing the firm at Rs 140 crore(~$ 32 million). Future Ventures, which is in the process of its maiden public issue, led this round of funding which has also seen participation from the existing investor, the AIM-listed India focused private equity firm Elephant Capital.
Future Ventures is buying around 0.12 million shares through two tranches of Rs 15 crore and Rs 22.5 crore. It has already picked up 13.65% stake that has got diluted to 12.79% with issue to other investors, and has subsequently struck a deal to acquire further shares at the same price of Rs 3,063 per share of ACK, subject to certain conditions before June 30, according to its disclosures in the documents filed with market regulator for its public issue.
ACK is into the business of education and entertainment by publishing various children’s periodical magazines and books, such as Tinkle, a monthly comic magazine and Amar Chitra Katha, a comic series. It also has products and services in new age media platforms including a social networking website for children. The company also entered the business of media distribution by acquiring India Book House, one of the largest distributors of books and magazines in India.
Elephant Capital has also participated in the funding with a follow on investment of $1.5 million or a little over Rs 6 crore. Its total commitment in ACK is now £4.1 million or $6.8 million. Last June, it had picked up around 29% in the firm for £3.2 million, a deal that valued ACK at around Rs 74 crore.
In a statement the investment firm disclosed, “Elephant Capital’s co-investment vehicle will also be investing approximately £135,000. Elephant Capital’s equity stake will be 26.1% following this investment.”
Last year also Elephant Capital’s co-investment vehicle had put in £0.5 million separately, and Gaurav Burman, managing partner of Elephant Capital, had brought in an additional £0.3 million, in his personal capacity.