Dynamic Services & Security Limited to Acquire 100% Stake in Badrinath Infrastructure, Targeting Suncity Mall

Dynamic Services & Security Limited to Acquire 100% Stake in Badrinath Infrastructure, Targeting Suncity Mall​

Dynamic Services & Security Limited has entered into a Share Purchase Agreement to acquire a 100% stake in Badrinath Infrastructure Private Limited (BIPL). This acquisition provides the company access to 'Suncity Mall', located at Barasat in Mouza Banmalipur, Dist North 24 Parganas, Kolkata, West Bengal- 700124.

The 'Suncity Mall' property features a super built up area of 151643 sq. ft. and is situated on a 0.83 Acre lease hold land area. The enterprise value assigned to the mall is Rs. 64 Crore. BIPL was responsible for the construction of the entire mall and subsequently subleased the entire area to five associate companies, excluding the common area and car parking zone.

Details of the Acquisition Structure​

The acquisition process involves an overall investment of up to Rs. 15 Crore from Dynamic Services & Security Limited. The purchase will be completed through the acquisition of BIPL's entire paid-up share capital, making BIPL a wholly owned subsidiary. Following this, BIPL is set to acquire the entire capital from the remaining five associated companies. Upon acquiring these five entities, these companies will become wholly owned subsidiaries of BIPL, allowing BIPL to effectively hold the lease hold right of 'Suncity Mall'.

Currently, 'Suncity Mall' is managed by six companies. BIPL currently holds the leasehold rights over the land and the common area of the mall. The remaining five entities—Gourinandan Traders Private Limited, Kapileshwar Dealmark Private Limited, Levia Apartments Private Limited, Sukhari Enclaves Private Limited, and Everwhere Infraprojects Private Limited—hold lease rights for 30 years over the ground floor and five floors of the mall. After the expiration of these 30-year lease rights, the lease rights in these five companies will return to BIPL.

The combined operations of these entities are projected to generate a rental income of Rs. 75 Lakhs per month, with potential for substantial increases.

Transaction and Entity Details​

The acquisition of BIPL for a consideration of Rs. 25.55 Lakhs will establish the company as a wholly owned subsidiary. The subsequent acquisition of the five associate companies will result in a step-down subsidiary structure.

The financing structure involves a total outflow of Rs. 15 Crore, comprising Rs. 5.09 Crores for shares and Rs. 9.91 Crores for debt discharge. The total consideration for the associated entities is valued at Rs. 64 Crore, with Rs. 58.91 Crores expected to be covered through the absorption of loans and liabilities, and Rs. 5.09 Crores in cash.

The five associated companies holding lease rights are:

• Gourinandan Traders Private Limited (GTPL)
• Kapileshwar Dealmark Private Limited (KDPL)
• Levia Apartments Private Limited (LAPL)
• Sukhari Enclaves Private Limited (SEPL)
• Everwhere Infraprojects Private Limited (EIAPL)

BIPL, incorporated on 25-07-2006, is involved in the operation and maintenance of Suncity Mall in Kolkata.

The following table summarizes the turnover for BIPL and the five associated entities over the last three years:

DYNAMIC Stock Price Movement​

Shares of Dynamic Services & Security Limited rallied on Tuesday, settling at ₹112.2 after gaining 10.00% through the trading session. Total volume supporting this move was recorded at 25,000 shares.

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