Pentamedia is exiting Mayajaal Entertainment Ltd by selling it's 48% stake. Kotak Realty Funds Group may acquire the stake from Pentamedia.
Pentamedia Graphics Ltd had invested Rs40Cr in the multiplex operator. It is expecting to sell the stake for around Rs70-75Cr.
Mayajaal Entertainment owns 30 acres of land near Chennai and it talking to real estate developers to develop a Rs300Cr villa project and other real estate projects on the site. Pentamedia is not interested in real estate business and hence is exiting from it's 4 year old investment.
Mayajaal Entertainment currently operates 14 screens, which makes it the country's largest multiplex, and is planning to expand to 16 before Chrismas. The company is also planning to convert its 40-room resort to 120-room high-end SPA resort.
Mayajaal will develop the Villa project in two phases on a nine acre plot. It will be developed through a special purpose vehicle, in which Mayajaal will hold 50% stake.
If the deal with Kotak goes through, it will be Pentamedia second transaction with Kotak. Earlier in 2007, it had sold 20-acre plot in Old Mahabalipuram Road to Kotak.The land was acquired under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002.
In an attempt to boost capital inflows in the infrastructure sector, RBI has allowed Infra companies to to raise Chinese yuan-denominated debt, through the approval route. RBI has also raised the borrowing limit for companies.