MUMBAI: Smaaash Entertainment Pvt. Ltd, the Indian virtual sports and entertainment company promoted by serial entrepreneur Shripal Morakhia, is planning to launch its initial public offering (IPO) to raise ₹5 billion from the market, Livemint reports.
“Smaaash will be raising close to ₹500 crore (Rs 5 billion) through the IPO. The company has appointed a few investment bankers. It is likely to happen by December 2018,” a source aware of the development told the business daily.
Founded in 2012, Smaaash lists cricket legend Sachin tendulkar as a minority stakeholder and is also endorsed by Team India captain Virat Kohli.
In May, Nasdaq-listed special purpose acquisition company I-Am Capital had signed an agreement with Smaaash to acquire a 24.5% stake in the company for $49 million.
“They are planning to close the $49 million round from I-AM Capital in the next 15-20 days, most probably, by the end of August. After that they will start the IPO process,” Livemint quotes a source as having confirmed.
Smaaash will use the cash proceeds to fund its inorganic growth initiatives, repay part of its debt and for its working capital requirements.
The company owns and operates digital entertainment centres for cricket, football, go-karting and bowling, besides virtual games across its 30 centres in India. It also has a centre in the US and plans to expand its services to Dubai, Saudi Arabia and Thailand.
Last August, Smaaash had raised Rs 900 million from high net-worth individual (HNIs) clients of Avendus Wealth Management Pvt. Ltd, the wealth management arm of financial services firm Avendus Capital. The same months also saw PVR Ltd and the Major Cineplex Group selling their bowling joint venture, PVR BluO Entertainment Ltd, to Smaaash for Rs 860 million, the business daily further reports.
In July 2017, it had raised Rs 2.8 billion through a mix of equity and debt.
