Imagicaaworld Entertainment Allots 17 Lakh Shares to DMart Promoter Gopi Kishan Damani – Details Inside
Imagicaaworld Entertainment’s stock surged over 8% on February 12 following the company’s announcement of a ₹345.19 crore fundraise through a preferential share issue. The theme park and entertainment giant also disclosed its Q3FY25 results, revealing a mixed financial performance but a strong sequential recovery.
One of the key highlights of the share allotment is DMart promoter Gopi Kishan Damani receiving 17 lakh shares. Let’s dive deeper into the details of this fundraising, the company’s latest financial performance, and its stock trends.
Imagicaaworld’s Fundraising Plan
To strengthen its financial position and fuel growth, Imagicaaworld Entertainment has planned a fundraise of ₹345.19 crore, structured in two phases:
1. Equity Share Issuance (₹172.59 crore)
- The company will issue 2.34 crore equity shares at a price of ₹73.50 per share.
- The face value of each share is ₹10.
- This preferential allotment will bring in ₹172.59 crore.
- The shares will be allotted to both promoter and non-promoter entities.
2. Convertible Warrants Issuance (₹172.59 crore)
- Imagicaaworld will issue 2.34 crore convertible warrants at ₹73.50 per unit.
- The warrant holders will have the right to convert these into fully paid-up equity shares of ₹10 face value each.
- This will add another ₹172.59 crore to the company’s capital.
Key Allottees in the Fundraise
Among the notable investors in this preferential issue:
- Gopi Kishan Damani (DMart promoter) – 17 lakh shares
- Cybage Software – 20.4 lakh shares
- AFOUR Enterprises – 6.93 lakh shares
- Zapfin Teknologies – 6.8 lakh shares
Q3FY25 Financial Performance – A Mixed Bag
Imagicaaworld reported its quarterly earnings on February 12, reflecting a blend of YoY profit decline but strong sequential recovery.
- Net Profit: ₹3.2 crore (down 25% YoY from ₹4.3 crore in Q3FY24)
- Revenue: ₹93.2 crore (up 27% YoY from ₹73.6 crore in Q3FY24)
- Sequential Growth: Revenue surged 118% QoQ from ₹42.7 crore in Q2FY25, marking a strong operational comeback.
While the company saw a YoY decline in profit, the turnaround from a ₹6.5 crore net loss in Q2FY25 to a ₹3.2 crore profit in Q3FY25 signals positive momentum.
Stock Performance – A Strong Comeback
Following the fundraising announcement and Q3FY25 results, Imagicaaworld Entertainment’s stock saw significant movement:
- Stock surged 11.2% intraday, reaching ₹76.
- Closed with an 8.43% gain at ₹74.07.
- Rebounded 26% from its 52-week low of ₹58.65 (January 2025).
- Still 28% below its 52-week high of ₹103.24 (August 2024).
Despite declining around 5% in the past year, the stock is showing signs of recovery, particularly in February 2025, with a 13% rise after five months of losses.
Financial Ratios & Key Metrics
To better understand Imagicaaworld’s financial health, here are some key metrics:
| Metric | Value |
|---|---|
| Market Cap | ₹4,017 Cr. |
| Current Price | ₹74.1 |
| 52-Week High/Low | ₹103 / 58.6 |
| Stock P/E | 50.6 |
| Book Value | ₹19.8 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | 3.04% |
| ROE (Return on Equity) | 7.61% |
| Debt to Equity | 0.09 |
| Industry PE | 41.1 |
| Debt | ₹96.1 Cr. |
| PEG Ratio | 3.20 |
| Intrinsic Value | ₹14.3 |
| Graham Number | ₹24.0 |
| Piotroski Score | 7.00 |
| Price to Book Value | 3.78 |
| Return on Invested Capital (ROIC) | 4.09% |
What This Means for Investors
Positives:
✅ Strong Revenue Growth: A 27% YoY and 118% QoQ jump in revenue shows improved business momentum.
✅ Fundraising Strengthens Balance Sheet: The ₹345 crore capital infusion could help reduce debt and drive expansion.
✅ Stock Recovery in Progress: After a long downtrend, the stock is showing early signs of a turnaround.
Concerns:
❌ High P/E Ratio (50.6): The stock is trading at a premium compared to the industry average (41.1).
❌ Low ROCE (3.04%) and ROE (7.61%): These indicate lower profitability compared to sector peers.
❌ Debt Levels: Though manageable (₹96.1 crore), the company will need consistent cash flow to maintain stability.
Final Thoughts
Imagicaaworld Entertainment’s latest fundraising move, especially with high-profile investors like Gopi Kishan Damani participating, signals confidence in the company’s future prospects. While the Q3FY25 results indicate financial improvement, investors must weigh the premium valuation and lower profitability metrics before making investment decisions.
With stock price recovering and new capital secured, the next few quarters will be crucial in determining whether Imagicaaworld can sustain its momentum and continue its upward trajectory.
What do you think? Will Imagicaaworld Entertainment’s stock continue to rise, or is this just a short-term boost? Let us know in the comments!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.