Wonderla Holidays will hit the market with Rs 170-190 crore initial public offering (IPO) on April 21, which will close on April 23. The company has fixed the price band between Rs 115 and Rs 125 per equity share. It will issue 1.45 crore shares under the IPO, diluting 25.66 per cent.
“The money raised will be used to fund our new amusement park coming up in Hyderabad. The project cost of the new project is Rs 250 crore. The rest of the money will be raised through internal accruals," Wonderla managing director Arun K Chittilappilly said.
Wonderla Holidays is a Bangalore-based amusement park operator, which seeks to raise money to fund its greenfield project in Hyderabad. Work on the Hyderabad venture is expected to begin in a month or two and the park will become operational 20 months after that, he added.
The company's profit after tax for the first nine months of FY14 stood at Rs 33.5 crore, while revenue was Rs 121.52 crore. The company currently owns and operates two amusement parks in Kochi and Bangalore under the brand Wonderla. It also owns and operates a resort beside its amusement park in Bangalore, which has been operational since March 2012.
Edelweiss Financial Services and ICICI Securities are the book running lead Managers to the issue.