Balaji Telefilms today said it will raise Rs 150 crore through allotment of equity shares on preferential basis.
“The Board of Directors of Balaji Telefilms Ltd in its meeting today has considered and approved a preferential issue of 1,07,20,000 equity shares at Rs 140 each, aggregating to Rs 150 crore to Atyant Capital India Fund – I, Vanderbilt University, GHI LTP LTD., GHI HSP LTD. And GHI ERP LTD., subject to necessary approvals,” Balaji Telefilms said in a BSE filing.
It further said: “The issue price represents a 26 per cent premium over the average of the weekly high and low of the volume weighted average share price of the company during the past 26-week period.”
The proposed issue will result in a dilution of 14.1 per cent of the equity share capital of the company and the post-issue promoter and promoter group holding in the company will be 40.6 per cent.
On utilisation of funds, the company said: “The proceeds of the issue will be utilised to catapult the launch and growth of ALT Digital Media Entertainment Ltd- the group’s foray into the B2C digital content business segment – the next growth driver for the company’s operating strategies.”
ALT Digital Media will operate as subscription video on demand (SVOD) based over the top (OTT) platform targeted towards Urban Indians and Indian Diaspora.
The preferential issue of equity shares is subject to approval from shareholders at the ensuing Extraordinary General Meeting to be held on March 5.
The transaction was facilitated by Axis Capital Limited, being the sole investment banker and advisor for the fund raise.
