Entertainment World raises Rs 307 cr PE funds

Realty developer Entertainment World Development (EWDPL) has raised nearly Rs 307 crore from a clutch of funds, including ICICI Venture and the US-based Pyramid group's Nettleton Global. EWDPL develops retail centres and townships in central India.

ICICI Venture has invested Rs 227 crore in the company. It has picked up a 14 per cent stake in the Indore Entertaiment World, a fully-owned subsidiary of EWDPL, for Rs 152 crore ($38 million) and increased its stake in EWDPL from 14 per cent to 18 per cent by pumping in Rs 75 crore.

The US-based Pyramid group's investment arm Nettleton Global is expected to pick up 6 per cent for Rs 80 crore ($20 million) soon, sources said.

EWDPL is expected to sign the deal with Nettleton in a fornight, sources said. The Pyramid group is one of the largest mall developers in the US, having developed 30 million sq feet.

When contacted, the chief financial officer, Madhusudan, declined to comment on the company's fund-raising plans.

EWDPL was in talks with the Singapore-based investor CapitaLand and global private equity fund Forum Partners to raise funds, but no deal could come through due to some reasons, sources said. Eredene Capital and Future group's Kshitij are the other investors in the company's projects.

EWDPL is developing nearly 11 malls and 4 townships, valued at Rs 2,400 crore, in Central India. According to sources, the private equity investment in the company follows its plans to go public by the year-end.

Phoenix Mills, promoted by Ruias, acquired 42 per cent stake in EWDPL as part of its plans to become a national mall developer. The transaction valued EWDPL's equity Rs 1,250 crore.