The Hindu Business Line : GV Films may get $12 million from Daewoo Securities

The $1-billion general purpose fund of Daewoo Securities (Europe) is likely to invest $12 million into the Chennai-based GV Films. This will be the first investment by the public-listed Daewoo Securities in India.

The board of directors of the company will hold a meeting on October 23, to consider the FCCB issue of 12 million to Daewoo Securities (Europe), in terms of the subscription agreement signed with the lead managers.

The stock has been seeing heightened activity on the market this week. Today, it closed flat at Rs 10 on the BSE with a traded quantity of 12.44 lakh shares.

According to a company spokesperson, the money would be deployed for the mixed-use asset building venture, GV Studio City across 23 locations in Tamil Nadu. The project, which will entail investments of approximately Rs 800 crore when completed, will become the key to GV Film's plans to diversify outside film-led entertainment business.

Earlier this year, GV Films had raised close to $25 million through a combination of GDR and FCCB, part of which was employed for acquiring a Singapore-based web casting company and screens in Tamil Nadu.

GV Studio City will be a combination of multiplex, a star hotel and a shopping mall. Each of these projects will include 4 screens, a 60-room hotel and shopping mall with international standards. These will house established brands such as Chennai Silks and Sarvana Bhavan.

GV Films has already acquired properties in Madurai, Trichy, Coimbatore and other centres and is close to finalising deals in 3 more centres. The company is evaluating proposals in other centres. The Studio City venture is expected to cover 7 locations in the first phase. The cash pumped in by Daewoo, which is expected to come in tranches, would spill over to film productions also.

Meanwhile, the company has revved up its production business. After launch first 3D television series for the Indian television industry, GV Films has now ventured into the 3D animation movie with a UK-based Company "Cutting the Wires."