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The company has entered into a deal with Sparsh Vidhyut to sell its hotel 'Hyatt Centric' in Goa for an enterprise value of Rs 270 crore, and it will use the proceeds to retire its entire debt, Cineline India CEO Ashish Kanakia said.
The hotel asset was owned by Mumbai-based Cineline India's wholly-owned arm R&H Spaces Private Ltd.
Kanakia said that the deal has resulted in debt reduction of Rs 120 crore pertaining to the hotel asset at the subsidiary level and the company also plans to utilise the sale proceeds to fully repay its outstanding debt of Rs 108 crore related to the film exhibition business, achieving a debt-free status.
"This move will accelerate growth and help expand our market presence through the addition of new screens," Kanakia said.
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Cineline India runs 77 screens under the MovieMAX brand across 21 properties in six states and has tied up an additional 82 screens.
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The company has monetised non-core real estate assets worth Rs 351 crore over the past two years, which included the sale of Eternity Mall in Nagpur for Rs 60 crore and two commercial spaces in Mumbai for Rs 21 crore.
"With debt to be fully repaid, we would strengthen our financial position and generate consistent free cash flow, which will be reinvested to drive business growth," Kanakia added.
By leveraging innovative strategies such as expanding screens through a low revenue share or profit-sharing model with developer-funded capex, the company is well-positioned to capitalize on the anticipated box office revival, unlocking significant upside potential, Kanakia said.
