Exhicon Events Partners With IEML for Rs 75 Crore Mohali Project

Exhicon Events Media Solutions has entered a joint venture agreement with India Exposition Mart Limited (IEML) for the Mohali Convention & Exhibition Centre project, with a total cost estimated at Rs 75 crore.

Reader Takeaway: Exhicon retains 65% control of the project while sharing operational and capital risks with a strategic partner.

What just happened

Exhicon Events Media Solutions has formally entered into a Joint Venture Agreement (JVA) with India Exposition Mart Limited (IEML) regarding the development, operation, and maintenance of the Mohali Convention & Exhibition Centre. To facilitate this, Exhicon will transfer 35% of its subsidiary, Exhicon Mohali Convention Centre Private Limited (EMCCPL), to IEML for a cash consideration of Rs 5,25,000. Post-transfer, Exhicon will retain a 65% majority stake, keeping the project within its subsidiary structure.

Why this matters

The project is a significant capital-intensive undertaking under a Public-Private Partnership (PPP) model with the Government of Punjab. By bringing in IEML, Exhicon secures a strategic partner for the operational phases, while the governance structure—including a board split of two directors for Exhicon and one for IEML—ensures that Exhicon maintains majority management control. Future capital requirements will be shared proportionally between the two parties.

What changes now

EMCCPL is transitioning from a wholly-owned subsidiary to a joint venture vehicle. The transfer process is currently underway, pending dematerialization and standard regulatory formalities. The involvement of IEML brings expertise in large-scale venue management to the project, which is situated at IT City, Sector 83, Mohali.

Risks to watch

The primary risk factor is the execution of a Rs 75 crore infrastructure project within the stipulated timelines. Additionally, specific operational decisions for the center will now require affirmative consent from IEML, which may influence future project strategy and capital allocation.

What to track next

Investors should look for updates on the project's construction milestones and the final completion of the equity transfer process. Future capital calls through rights issues will also provide insights into the project's funding health.