Imagicaaworld Shanku Invests ₹100 Crore In Gujarat

MUMBAI, May 20, 2026: Imagicaaworld Entertainment Limited has approved a strategic investment of up to ₹100 crore in Shanku's Water Park, one of Gujarat's largest water and amusement park destinations, marking the company's most significant regional expansion move since it diversified beyond its flagship properties in Maharashtra.

The board approved the deal at a meeting on May 15, 2026, authorising Imagicaaworld to invest in Mehsana Next Parks Private Limited, the special purpose vehicle set up to own and operate Shanku's Water Park in Mehsana, near Ahmedabad. The investment will be structured as a combination of equity and debt securities, with additional capital set aside for future expansion and new attractions on adjoining land.

Imagicaaworld enters Gujarat through Shanku's Water Park deal

Shanku's Water Park sits across more than 25 acres in Mehsana and features over 25 rides and attractions. It draws visitors from multiple catchment areas including Ahmedabad, Gandhinagar and surrounding districts, and sits within roughly one hour of both Ahmedabad city and GIFT City, India's operational smart city and international financial services centre, giving the park access to a large urban consumer and weekend tourism base.

The park has recently completed a renovation cycle that includes infrastructure upgrades and the installation of advanced water filtration systems comparable to those deployed at Imagicaaworld's flagship Khopoli property. Management described it as one of Gujarat's most established water park brands, with existing regional recognition and an infrastructure base capable of supporting further growth.

Deal structure includes operations and management services

Beyond the capital investment, Imagicaaworld will provide end-to-end Operations and Management services to Shanku's Water Park under the agreement. These services cover park operations, guest experience design, safety systems, food and beverage management and revenue optimisation. The company will earn a management fee of between 6% and 10% of revenue under the arrangement.

The investment vehicle, Mehsana Next Parks Private Limited, is a subsidiary of Keshav Holiday Resort Private Limited, which operates the Shanku's brand. Imagicaaworld said the specific mix of equity and debt in the ₹100 crore outlay will be finalised in mutual agreement with both entities, with definitive agreements to be disclosed to the stock exchanges once executed.

The transaction was first flagged in disclosures to stock exchanges in January and April 2026, making the board's formal approval on May 15 the conclusion of a multi-month evaluation process.

Managing Director cites Gujarat's consumer potential

Jai Malpani, managing director of Imagicaaworld Entertainment Limited, said the Shanku's deal marks an important step in the company's strategy to deepen its presence in western India's leisure and tourism market.

"Gujarat has a strong consumer base, rising discretionary spending and significant long-term potential for organised entertainment destinations," Malpani said. He added that Shanku's Water Park offers high-quality infrastructure, strong regional recall and proximity to one of India's most active commercial growth corridors.

Malpani said the partnership aims to use Imagicaaworld's operational expertise and brand capabilities to drive higher guest footfalls and create long-term value for stakeholders.

Expansion signals a shift to asset-light, high-margin formats

Imagicaaworld currently owns and operates several entertainment destinations in India, including Imagicaa Theme Park, Wet'n Joy, Sai Teerth and Aqua Imagicaa, all concentrated in Maharashtra. The Shanku's deal represents a deliberate shift toward what the company describes as scalable, high-margin formats that expand geographic reach without requiring full ownership of a greenfield property.

By investing in an established park and layering on management services for a fee, Imagicaaworld gains exposure to Gujarat's leisure market while spreading capital risk across an existing operational asset rather than building from the ground up.

Q4 results show footfall growth but declining profits

The Shanku's announcement coincided with the release of Imagicaaworld's financial results for the fourth quarter and full year ended March 31, 2026. In Q4FY26, revenue from operations reached ₹91.9 crore, with visitor footfalls rising 5% year-on-year to 6.21 lakh — a number that management cited as evidence of steady consumer demand across its existing parks.

On a consolidated basis for the full year, however, revenue from operations declined to ₹373.85 crore from ₹410.22 crore in FY25, and consolidated net profit fell sharply to ₹0.64 crore from ₹77.17 crore. The company attributed higher expenses, including increased employee costs, finance charges and other operating expenses, as key factors in the profit decline.

Auditors Suresh Surana & Associates LLP issued an unmodified opinion on both the standalone and consolidated results, as confirmed by the company's chief financial officer.

Gujarat leisure market draws fresh hospitality investment

The Shanku's transaction is part of a broader wave of hospitality and leisure investment into Gujarat, which has attracted new hotel signings from brands including Courtyard by Marriott in Somnath and Le Méridien in Surat in recent months. The state's growing middle class, high road connectivity and proximity to large urban centres have made it an increasingly attractive destination for organised leisure operators looking beyond established markets in Maharashtra and Rajasthan.

Imagicaaworld said the Shanku's investment positions it to capture the weekend tourism market that flows from Ahmedabad and GIFT City, while also drawing visitors from Gandhinagar and smaller towns across north Gujarat.

Sources: Imagicaaworld Entertainment Limited board meeting disclosure (May 15, 2026); NSE regulatory filing; Hotelier India (May 20, 2026); Free Press Journal; SME Street.