Carnival Films Pvt. Ltd buys Stargaze Entertainment

Carnival Films Pvt. Ltd has bought multiplex company Stargaze Entertainment Pvt. Ltd from Network18 Media & Investments Ltd after the latter announced the vending of its majority stake in the company. Stargaze operates multiplexes in developing urban centers of India under the brand name of 'Glitz Cinemas'.

Network 18’s venture capital arm Capital18 Fincap Pvt. Ltd. is a majority shareholder at Stargaze and the transaction, expected to be completed within the current financial year. The deal will result in a profitable exit for Capital18. Founded by Capital18, Stargaze started commercial operations in July 2008. It operates around nine multiplexes in eight tier II & III cities, including Raipur, Ajmer, Ranchi, Jodhpur, Bilaspur, Dehradun, Kurukshetra and Muzaffarnagar.

Kochi-based Carnival Films operates cinema chains under the brand ‘Carnival Cinemas'. It has over 50 operational screens while 75 screens are to come on stream soon taking the total portfolio to 125 screens. Last month, Carnival acquired Big Cinemas from Anil Ambani-led Reliance Group for roughly Rs 700 crore, the biggest ever in this sector. Carnival Films had also bought out the multiplex business of Housing Development and Infrastructure Ltd (HDIL) for a little over Rs.100 crore in July last year.

The multiplex business is constantly soaring in India. Recently with Inox buying Satyam to Mexico's Cinepolis acquiring Fun Cinemas from Essel Group, there is a perpetual shift in the multiplex business. Another Mumbai-based firm KSS Ltd, formerly known as K Sera Sera Ltd, has also decided to sell a minority stake in its subsidiary K Sera Sera Miniplex Ltd through offer for sale.

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