The key to the success in amusement park business is to periodically bring in new things to keep up the excitement level, which in turn, helps improve footfalls, said of Arun K Chittilapilly MD, Wonderla Holidays.
The Bangalore-based amusement park Wonderla Holidays public issue will open for subscription on April 21 and close on April 23.
It will be the biggest issue in the hospitality sector post Mahindra Holidays in mid-2009. The price band is fixed at Rs 115-125 per equity share. The company plans to invest the funds raised from the IPO into an amusement park in Hyderabad. The cost of the park would be around Rs 250 crore.
When asked if the company would still need to raise additional funds for the park, Chittilapilly said the company has already invested around Rs 30-40 crore in the project from internal accruals and another R 20-30 crore would come from debt. The company so far has been operating in medium to largescale amusement parks with a footfall capacity of 12,000 people a day.
According to Chittilapilly it is still a growing industry in India and the company aims to concentrate on this business going forward. The company aims to capitalise on the in-house manufacturing of some rides, as well as in-house park designing, he said. Going forward the company also plans to replicate this model in large cities starting with Hyderabad, he added.
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