Arkade Developers Limited, a key player in India’s real estate sector, announced a major strategic acquisition in a filing dated July 3, 2025. The company’s Board of Directors has approved the acquisition of 100% equity shares in Filmistan Private Limited (FPL) for a cash consideration of ₹182.95 crore, thereby making FPL a wholly owned subsidiary of Arkade Developers.

This development was disclosed in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as per the guidelines outlined in SEBI Circulars dated July 13, 2023, and November 11, 2024.

The board meeting commenced at 10:00 A.M. and concluded at 10:40 A.M., wherein the approval for executing the Share Purchase Agreement (SPA) was granted. According to the official intimation signed by Sheetal Solani, Company Secretary & Compliance Officer, Arkade is acquiring FPL entirely through a cash transaction. The acquisition is expected to be finalized within one month.

Strategic Intent Behind the Acquisition

The acquisition is part of Arkade’s expansion strategy in the real estate sector, utilizing the acquisition of FPL to facilitate smoother operations and future scalability. Though FPL operates in the film and entertainment industry, Arkade plans to repurpose the acquired entity’s capabilities and assets to support its real estate business development goals.

Arkade clarified that the acquisition does not fall under the category of a related party transaction, and none of the promoters or promoter group entities have any interest in FPL. This ensures that the transaction is conducted at arm’s length, adhering to the highest standards of corporate governance.

About Filmistan Private Limited (FPL)

Filmistan Private Limited, incorporated on April 29, 1943, is engaged in the manufacturing, production, distribution, and exhibition of cinematographic films and pictures in India. Despite its long history, FPL currently has a relatively modest financial footprint:

• Net worth as of March 31, 2024: ₹5.54 lakhs

• Turnover FY 2023-24: ₹18.87 lakhs

• Previous Turnover: ₹6.83 lakhs (FY 2022-23) and ₹11.25 lakhs (FY 2021-22)

This indicates that the company is a non-operational or underutilized entity, and its acquisition by Arkade appears to be asset- or location-driven, rather than revenue-driven.

Acquisition Details at a Glance

The acquisition will not require any governmental or regulatory approval, and Arkade has already confirmed compliance with all disclosure mandates under SEBI Listing Regulations.

Market Implications and Strategic Benefits

While FPL’s core business is unrelated to real estate, the move suggests that Arkade Developers is exploring strategic acquisitions that provide either real estate holdings, land parcels, or redevelopment potential. It's common for real estate firms to acquire older or dormant companies with valuable land or heritage properties for redevelopment in metro cities like Mumbai.

In the case of Filmistan Pvt Ltd, the location and assets associated with its business may offer valuable real estate leverage, which Arkade can strategically develop into residential or commercial real estate projects. This is consistent with Arkade’s reputation for urban redevelopment and premium housing projects.

Furthermore, by acquiring 100% of FPL’s shares, Arkade gains full operational and financial control, allowing for swift execution of development plans and alignment with long-term growth strategies.

Compliance and SEBI Disclosure

Arkade has maintained complete transparency in its disclosure, aligning with:

• Regulation 30 of SEBI LODR Regulations, 2015

• Para A of Part A of Schedule III

• SEBI Circulars dated July 13, 2023 (CFD/PoD-1) and November 11, 2024 (PoD2)

Such compliance is essential for investor trust and ensures that stakeholders are fully informed of major corporate developments.

Conclusion

The acquisition of Filmistan Private Limited by Arkade Developers Limited for ₹182.95 crore marks a strategic expansion move likely tied to real estate development opportunities, rather than synergy with the film industry.

This step showcases Arkade’s bold approach to inorganic growth, as it positions itself to capitalize on asset-rich opportunities that can be transformed into high-value real estate developments. With full control over FPL, Arkade is set to accelerate its presence in key urban real estate markets, keeping stakeholders and investors optimistic about its future direction.

As the transaction reaches completion within the next month, market watchers and investors will closely monitor Arkade’s next steps regarding the utilization of Filmistan’s assets, and how effectively this acquisition translates into long-term value creation.

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