Adlabs Ent surges 5% as Radhakishan Damani completes hotel acquisition

NEW DELHI: Shares of Adlabs Entertainment jumped 5 per cent on Thursday after Radhakishan Damani, founder of supermarket chain DMart, completed acquisition of the Adlabs' five star luxury hotel located in a theme park off the Mumbai-Pune expressway.

Following the development, shares of Adlabs Entertainment rose 5 per cent to end at Rs 70.35 on BSE.

The hotel Novotel Imagica Khopoli was sold in a bid to reduce debt, Manmohan Shetty, Chairman of Adlabs told ET.

The acquisition was made by Damani’s unit Bright Star Investments.

The sale of Novotel Imagica Khopoli and land measuring 8.9 acres for Rs 212 crore was approved by the Adlabs board in November to help reduce debt, the company said in a presentation to investors this month. On Thursday's the company's market capitalisation stood at Rs 570 crore.

The 287-room hotel managed by Accor is located within the Adlabs Imagica theme park, which houses rides and attractions, restaurants, besides water and snow parks. The hotel boasts a children’s activity centre, speciality restaurants, a gym and banquet halls that can house about 600 people, according to the Adlabs Imagica website.