Reco Zinnia Private Limited agreed to acquire 6.61% stake in Vamona Developers Pvt. Ltd. from The Phoenix Mills Limited (BSE:503100) for INR 822.4 million on May 26, 2021. Total enterprise value as INR 15.11 billion.

Pursuant to the execution of the definitive agreements Reco Zinnia Private Limited shall subject to the terms and conditions agreed to therein, invest INR 15.1 billion in two tranches, Reco Zinnia Private Limited first tranche investment will be INR 11.1 million second tranche investment will be INR 4 billion on an aggregate basis across Offbeat Developers Private limited, Vamona Developers Private limited and Graceworks Realty and Leisure Private limited. Equity shareholding in each company through a combination of fresh equity subscription and secondary transfer of equity shares held by the The Phoenix Mills Limited in Offbeat Developers Private limited and Vamona Developers Private limited. Post the completion of first tranche investment by Reco Zinnia Private Limited, The Phoenix Mills Limited and Reco Zinnia Private Limited shall hold 73.56% and 26.44% respectively, of the paid up equity share capital in each Offbeat Developers Private limited, Vamona Developers Private limited and Graceworks Realty and Leisure Private limited.

In related transactions, Reco Zinnia Private Limited entered into an agreement to acquire 10.31% stake in Offbeat Developers Private limited and executed of the Definitive Agreements to invest in Offbeat Developers Private limited, Vamona Developers Private limited and Graceworks Realty and Leisure Private limited. Post completion of these transactions, Reco Zinnia Private Limited will own 35.91% stake in Offbeat Developers Private limited, Vamona Developers Private limited and Graceworks Realty and Leisure Private limited. Vamona Developers Pvt.

Ltd. reported revenue of INR 1.5 billion and net worth of INR 2.8 billion. The deal is subject to regulatory approval. Sai Krishna Bharathan, Shivani Kabra and Kunal Kumbhat of AZB & Partners acted as legal advisor to Reco Zinnia Private Limited.