Edelweiss Group has invested Rs 300 crore of mezzanine funds (a hybrid of debt and equity financing that gives the lender the right to convert to an ownership or equity interest in the company in case of default, after venture capital companies and other senior lenders are paid) into Smaaash Entertainment (SMAAASH), the sports-based entertainment company co-owned by film producer-director Shripal Morakhia and former cricketer Sachin Tendulkar.
The funds raised from the Edelweiss Group have been used for debt consolidation and financing two acquisitions — a 100% stake in PVR bluO and in SVM Bowling & Gaming — in all-cash deals. PVR bluO, a subsidiary of the BSE-listed PVR Cinemas, was acquired for Rs 86 crore last month.
The acquisitions have added 19 centres to SMAAASH’s blueprint in India, expanding its reach to 700,000 square feet — the largest for any player in this space countrywide. The company plans to open about another 10 centres and is aiming to have a million square feet operational by the end of the year. Of the 19, five centres are owned by franchises. The deal is a part of the company’s growth strategy and SMAAASH will now be present in 26 centres across 13 cities in India and one in the Mall Of America — the largest mall in the US — located in Bloomington in the state of Minnesota.
When contacted, SMAAASH co-owner Morakhia declined to comment on the deal. Fractal Capital acted as the sole adviser to SMAAASH for the fund raising from Edelweiss Group as well as for the acquisitions of PVR bluO Entertainment and SVM Bowling & Gaming.