TVS Capital and Aditya Birla Private Equity have picked a little over 1 per cent each in Wonderla Holidays Pvt Ltd for Rs 18.12 crore ($3 million). The two PE firms joined HDFC Infrastructure Fund, a part of the country’s top mutual fund house, to come in as anchor investors in the initial public offer (IPO) of Wonderla.
Wonderla, which runs two amusement parks and one resort in the country, is looking to raise around Rs 180 crore ($30 million) through its IPO which opens for subscription on Monday. The public issue will be the biggest in the hospitality sector since Mahindra Holiday & Resorts floated its IPO in mid-2009 and the first significant IPO in the country since Just Dial went public last year.
The company is offering 1.45 million shares in the issue constituting some 25.66 per cent of the diluted capital base, as per its RHP filed with SEBI. The issue opens on April 21 and closes on April 24.
Aditya Birla PE picked 1.1 per cent for Rs 8.4 crore while TVS Capital picked 1.37 per cent in Wonderla for Rs 9.72 crore. TVS Capital picked the state through its TVS Shriram Growth Fund 1B. It has previously invested in two firms MedPlus Health Services and Ratnakar Bank from the second domestic rupee fund.
The anchor investors picked shares at Rs 125 each, the upper end of the price band of Rs 115-125 a share for the IPO. At the upper end of the price band the company would be able to raise up to Rs 181.2 crore, valuing it at around Rs 706 crore ($118 million).
Edelweiss and ICICI Securities are the book running lead managers to the IPO.
Wonderla is raising capital to build a new amusement park in Hyderabad, which requires an investment of Rs 250.7 crore. The company has acquired 49.57 acres of land for this amusement park.
Wonderla has already invested Rs 22.6 crore for this and hopes to raise around Rs 173 crore through the IPO, with the rest being raised through debt.
Over the past few years, the company saw positive growth in its revenue and profit margins. It clocked revenues of Rs 69.7 crore in FY10, which rose to Rs 91.2 crore in FY11, Rs 114.5 crore in FY12 and Rs 139.17 crore in FY13 and for the first nine months of the last fiscal ended December 31, 2013, clocked Rs 121.5 crore.
Promoted by Kochouseph Chittilappilly and his son Arun Chittilappilly, Wonderla started its first amusement park in Kochi in 2000 and the second unit in Bangalore in 2005, following which it started its first resort.
This will be the second firm of the promoters to go public. They had previously taken V-Guard Industries Ltd to the market. V-Guard, which counts Nalanda Capital as a large institutional shareholder, manufactures voltage stabilisers, pumps & motors, electric water heaters, solar water heaters, cables, UPSs and ceiling fans.
The issue was subscribed 42 per cent at the end of day 1, which sets a right tone for the IPO to sail through. Almost two-thirds of the QIB portion was subscribed on the opening day with retail investors applying for shares representing a little over a quarter reserved for them. Non-institutional investors, who represent HNIs and other corporate investors, applied for shares representing around fifth of the total shares.