Shares of Arkade Developers Ltd soared 5% on 3 July after the company announced the acquisition of Filmistan Pvt Ltd (FPL) for Rs 182.95 crore, making it a wholly-owned subsidiary of the company.

Earlier, on Thursday, the company’s board of directors authorised the share purchase agreement for the acquisition. The acquisition will be finalised within a month and will not require any regulatory permissions, Arkade Developers stated in an exchange filing.

FPL manufactures, produces, distributes, and exhibits cinematographic films and pictures in India. As of 31 March 2024, FPL has a net worth of Rs 5.54 lakh and a turnover of Rs 18.87 lakh.

Arkade Developers stated that the acquisition is intended to facilitate a smoother expansion of activities in the real estate sector.

FPL was incorporated on 29 April 1943. In FY24, the company had a turnover of Rs 18.87 lakh, up from Rs 6.83 lakh in FY23 and Rs 11.25 lakh in FY22.

Arkade Developers’ fourth quarter net profit grew by 70% to Rs 33.3 crore from Rs 19.6 crore in the previous fiscal. Revenue climbed by 7% to Rs 131.4 crore, up from Rs 122.8 crore the previous year.

The company’s earnings before interest, taxes, depreciation, and amortisation climbed by 66% to Rs 44.4 crore from Rs 26.9 crore in the first quarter of the previous year. Its margin increased to 33.79% from 21.91% a year ago.

At 3:30 pm, the shares of Arkade Developers closed 3.94% higher at Rs 195.82 on NSE.

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