Wonderla Holidays Plans IPO For Hyderabad Amusement Park

Wonderla Holidays has filed a DRHP for an IPO. The company currently operates amusement parks at Kochi and Bengaluru. In March 2012, it started opened a hotel at its Bengaluru location. The company now plans to tap the markets to raise funds for its upcoming amusement park in Hyderabad.

Wonderla’s IPO is expected to issue 1.45 crore shares through a 100% book-building issue. Although the price hasn’t yet been decided upon, the company intends to use Rs 178.09 crore of the proceeds towards the development of the amusement park at Hyderabad. This project is expected to be completed in two years’ time post the issue.

The company has already acquired 55 acres of land and employed approximately Rs 32 crore for the project. This has been funded by way of temporary debt arrangements and internal accruals. The total cost of the project is expected to be Rs 250.69 crore.

In FY12, Wonderla’s revenues stood at Rs 114.52 crore, with Kochi contributing Rs 51.71 crore and Bengaluru bringing in Rs 62.81 crore. The management expects similar footfalls and revenue generation from its Hyderabad project too.

For more details on the IPO, an analysis of a detailed discussion with the management of Wonderla and our view on the prospects of the company, watch this space.