The Indian Hotels Company Limited (IHCL) has announced a strategic partnership with Atmantan, marking its foray into integrated wellness. The deal involves IHCL acquiring a 51% stake in Sparsh Infratech Pvt Ltd (Atmantan) with an enterprise value of approximately ₹415 Crores. This collaboration aims to leverage the growing demand for holistic health and experiential travel.
Strategic Wellness Foray
The Indian Hotels Company Limited (IHCL) is entering the integrated wellness segment through a strategic partnership with Atmantan. The company will acquire a 51% stake in Sparsh Infratech Pvt Ltd (Atmantan).
Deal Highlights
The enterprise value of Sparsh Infratech Pvt Ltd (Atmantan) is approximately ₹415 Crores. The investment includes a primary investment of around ₹205 Crs and a secondary share purchase of about ₹35 Crs. The primary investment will be used to retire net debt of the company (approximately ₹150 Crores).
Financial Performance & Synergies
Atmantan has demonstrated robust financial performance, with a revenue CAGR of 25% from FY19 to FY25 and high EBITDA margins of close to 50%. IHCL anticipates synergies through the partnership, including complementing its existing footprint in Maharashtra, cross-selling opportunities with J Wellness Circle, loyalty program integration, and best practices for capital light expansion. Atmantan is considered amongst the best wellness resorts in India and has won various awards.
Financial Snapshot
Key financials for Sparsh Infratech Pvt Ltd are as follows:
In FY25, the total revenue stood at ₹77 Cr with an EBITDA of ₹37 Cr and an EBITDA margin of 49%. EBIT for FY25 was ₹29 Cr.
For H1 FY25, the total revenue was ₹30 Cr, which increased to ₹35 Cr in H1 FY26, reflecting a growth of 15%. The EBITDA for H1 FY25 was ₹13 Cr, increasing to ₹15 Cr in H1 FY26 (19% growth). EBITDA margin saw a +1 PP increase between the periods, moving from 43% to 44%. EBIT grew 45% from ₹6 Cr to ₹9 Cr over the same periods.
Future Growth
The company plans to grow organically and add new rooms to the existing facility (planned for FY27), along with the addition of new Atmantans over time. One agreement is already executed on a management contract basis.
Source: BSE