HomeMarket NewsArkade Developers to acquire entire stake in Filmistan for ₹183 crore
The intent of the acquisition is to facilitate smoother expansion of operations in the real estate sector, Arkade Developers said.
Arkade Developers Ltd. on Thursday, July 3, said it will be acquiring the entire stake in Filmistan Pvt Ltd. (FPL) for ₹182.95 crore, following which it will become the former's wholly-owned subsidiary.
The company's board of directors approved the execution of the share purchase agreement for the acquisition on Thursday.
The acquisition will be completed within a month and it does not require any regulatory approvals, Arkade Developers said in an exchange filing.
FPL is in the business of manufacturing, production, distribution and exhibition of cinematographic films and pictures in India. As of March 31, 2024, FPL's net worth is ₹5.54 lakh with a turnover of ₹18.87 lakh.
The intent of the acquisition is to facilitate smoother expansion of operations in the real estate sector, Arkade Developers said.
FPL was incorporated on April 29, 1943. It reported a turnover of ₹18.87 lakh in FY24, up from ₹6.83 lakh in FY23 and ₹11.25 lakh in FY22.
Arkade Developers' fourth quarter net profit increased 70% to ₹33.3 crore from ₹19.6 crore in the previous fiscal. Its revenue increased 7% to ₹131.4 crore from ₹122.8 crore in the year-ago period.
The company's earnings before interest taxes depreciation and amortisation increased 66% to ₹44.4 crore from ₹26.9 crore in the first quarter of the previous fiscal. Its margin expanded to 33.79% from 21.91% in the year-ago period.
Arkade Developers shares were up 0.45% at ₹189.25 apiece at 11.10 am on Thursday, July 3. The stock has gained 7% this year, so far.
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