Elephant Cap acquires stake in Amar Chitra Katha for Rs 22cr

Elephant Capital, a private equity venture floated by Dabur group promoter Gaurav Burman, today said it has acquired stake in children's book publisher Amar Chitra Katha (ACK) for around Rs 22 crore.

"Elephant Capital has acquired a significant stake in Amar Chitra Katha Pvt for 3.2 million pounds," Elephant Capital said in a statement.

While the company did not disclose the percentage of stake it acquired, sources said it is close to 30 per cent, valuing ACK at nearly Rs 75 crore.

The investment will be made through Elephant Capital's Mauritian subsidiary, Tusk Investments Fund 1, it added.

"We believe there is a huge amount of value in ACK and look forward to working with the team to fully realise the potential the business holds. I believe this will be a very successful investment for Elephant Capital," Elephant Capital LLP Managing Partner Gaurav Burman said.

The company said Elephant Capital's co-investment vehicle will also invest 500,000 pounds, and Burman will be making an additional personal co-investment of 300,000 pounds.

Besides, it said it will appoint two directors to the board of ACK, Gaurav Burman and Amit Jain, representing one third of the board seats.

ACK is one of the leading children’s media companies in India, with a catalogue of over 500 print and 100 digital products, and 25 proprietary characters with pan-Indian recognition. Some of the popular books include 'Amar Chitra Katha' and 'Tinkle'.