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V. Rishi Kumar

Hyderabad , Sept. 8

PADMALAYA Telefilms Ltd., the Hyderabad-based entertainment software solutions provider, is eyeing possible overseas listing and is planning to seek shareholders nod to hike the foreign institutional investors' (FII) limit to 50 per cent.

Confirming this development, the Company Secretary of Padmalaya Telefilms, Mr A.S. Ramkumar, told Business Line that the company board would seek shareholders' approval for an enabling resolution that will facilitate overseas offer and thereafter possible listing.

However, nothing yet has been formalised with regard to the offer and other related issues.

In a communiqué to the company shareholders, the Padmalaya management said they would seek shareholders nod to accept any modifications in the proposal and issues subject to conditions as the SEBI, the RBI and the Government or such appropriate authorities may impose at the time of their approval.

Further, the company also plans to seek shareholders nod in accordance with the Foreign Exchange Management Act for both purchase of equity or for sale of equity to overseas bodies subject to the condition that the total holding of all FIIs put together shall not exceed 50 per cent of the paid up capital.

This resolution is aimed at attracting overseas investments.

Padmalaya is planning to expand the business activities in Exhibitors Division, which is one of several divisions of the company, to 100 theatres by 2005.

This is being done since the move is expected to directly support the distribution activity.

Zee mulls Telugu channel

Analysing the opportunities and threats, Padmalaya maintained that Zee is in the process of proposing a Telugu satellite channel, which can leverage and optimise the company library.

With Zee synergies, Padmalaya is in the process of becoming a full-fledged entertainment company covering software, cable division and animation division of Zee Telefilms.

Leveraging the synergies with Zee, Padmalaya board is assessing the potential of entering the cable entertainment network business.

The company has already taken over the management of Siti Cable business in Andhra Pradesh. It is in the process of improving the quality of the network and has initiated plans for expansion.

Earlier this year, Padmalaya had taken over the ZICA Mumbai division as a business concern which is expected to improve the animation production capacity and help tap the potential in both 2D and 3D animation market.

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