Post production services company Prime Focus Limited said it will raise Rs 330 cr by selling warrants, mostly to its promoter group.
The company would issue 31 mln warrants, taking the total diluted equity base of the company to 330 mln from 299 mln.
The warrants are being issued at Rs 106 each compared to current share price of around Rs 101.
The warrant holder will be able to convert the warrants into shares after April 1 next year.
Rs 300 cr worth of warrants are being purchased by the promoter group and the remaining by an unnamed private investor.
“The funds raised would be used largely towards debt reduction which is in line with our stated priority to significantly bring down the leverage of the Group,” the company said.
The promoter holding, on full conversion, will increase to about 40% from 35% as on September 30, 2017, it said.
Currently, the promoter shareholding comprises a 26% stake with Naresh and Namit Malhotra and a 9% stake with Monsoon Studio Pvt Ltd.
“Ever since the transformative and strategic transactions three years back, Prime Focus has been successfully consolidating its competitive positioning at a global level,” said Namit Malhotra, Founder, Executive Chairman and Global CEO, Prime Focus Ltd.
The company is the world’s largest independent integrated media services
provider and employs over 9,000 professionals in 19 cities across 5 continents.
It provides services such as visual effects, stereo 3D conversion and animation, technology products & services, production services including equipment rental and post-production services.
“This infusion is a further validation of our belief in the long-term growth and value opportunity for the Group. With a strengthened Balance Sheet, strong financial performance and promising outlook for all our businesses, we believe we are well placed to taking Prime Focus to greater heights.”