The Phoenix Mills Limited has informed the Exchange about Presentation
PHOENIXLTD · price
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Phoenix Mills announced plans to buy out Canada Pension Plan Investment Board's (CPP Investments) 49% stake in its material subsidiary Island Star Mall Developers (ISMDPL), taking ownership to 100%. The deal is valued at approximately Rs. 5,449 crore, payable in four tranches over 36 months (Rs. 1,257 cr in FY26, Rs. 1,370 cr in FY27, Rs. 1,358 cr in FY28, and Rs. 1,465 cr in FY29), funded via surplus cash, internal accruals, and incremental debt at ISMDPL. ISMDPL houses key retail assets like Phoenix MarketCity Bangalore (FY25 EBITDA Rs. 220 cr), Phoenix Mall of Asia (Rs. 171 cr), Phoenix Mall of the Millennium (Rs. 142 cr), and Phoenix Citadel (Rs. 83 cr), with ~2.2 msft of completed offices (Phoenix Asia Towers and Millennium Towers) currently at 3-11% occupancy and a target to reach 90% by 2026. Management stated the transaction would be significantly accretive from Year 1, with PML's attributable share of ISMDPL EBITDA potentially growing 3x-4x over time. Growth drivers include Phase 2 and 3 expansions at Phoenix MarketCity Bangalore (~700 hotel keys, ~2.6 msft additional retail/offices) and balance FSI potential of ~2.7 msft across Indore, Pune, and Bengaluru.
The deal consolidates full ownership of a high-growth real estate platform and removes minority interest leakage, boosting Phoenix Mills' attributable EBITDA and PAT. While Rs. 5,449 cr is a sizeable outflow, the staggered payment structure and ISMDPL's strong operating cash flows (~Rs. 513 cr in FY25) with low leverage (Net Debt/EBITDA under 1x) make it manageable, and management frames it as accretive from Year 1.