The Phoenix Mills announced that Island Star Mall Developers Private Limited (ISMDPL) has completed a buyback of 2,03,40,909 equity shares from CPP Investments. Following the buyback, The Phoenix Mills’ shareholding in ISMDPL has increased from 51% to 55.57%. The buyback, part of a larger proposed transaction, involved a consideration of ₹895 crore.
ISMDPL Share Buyback Completion
Island Star Mall Developers Private Limited (ISMDPL), a material subsidiary of The Phoenix Mills, successfully completed the buyback of 2,03,40,909 equity shares. The buyback transaction, where the company did not participate, involved CPP Investments offering their shares. The announcement finalizes a key step in the previously disclosed framework agreement dated July 24, 2025.
Increased Shareholding
Following the buyback, The Phoenix Mills’ shareholding in ISMDPL has increased from 51% to 55.57%. The buyback consideration amounted to ₹895 crore (Rupees Eight Hundred and Ninety-Five Crore only). This move is part of a larger strategy to potentially provide a full exit to CPP Investments from its 49% equity investment in ISMDPL.
Strategic Rationale
The buyback forms part of a proposed transaction designed to potentially provide CPP Investments with an exit from ISMDPL through various methods, including buybacks or secondary acquisitions. Post-transaction, The Phoenix Mills aims to hold 100% of ISMDPL’s shares, gaining sole control over the company, making ISMDPL a Wholly Owned Subsidiary.
ISMDPL Overview
ISMDPL, incorporated on April 10, 2006, operates, manages, and leases the ‘Phoenix MarketCity Bengaluru’ mall. It also has subsidiaries, including Alyssum Developers Private Limited, Sparkle One Mall Developers Private Limited, and Insight Mall Developers Private Limited, collectively forming the ISMDPL Platform. ISMDPL’s standalone turnover for the financial year 2024-25 was ₹28,362.73 lakhs.
Source: BSE
