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Our Bureau

Chennai April 13 GV Films Ltd is likely to announce shortly that the company would go in for a GDR issue, sources in the company have told Business Line.

The issue is to collect resources to fund the company's expansion plans, mainly for its Webcasting division.

The Webcasting division announced on Wednesday that it was in negotiations with a UK-based company for acquiring over 8,000 English films.

The library is valued at around $50 million, but the company is negotiating for a lower price.

The stock, however, closed 2.50 per cent lower at Rs 5.07 on the BSE against the previous day's close of Rs 5.20.

Trading volumes were firm at 10.26 lakh shares against the two-week average of 9.60 lakh shares.

Sources said that the seller had a non-exclusive right to the 8,000-odd films — most of them produced in the 1940s and 1950s.

If the sale goes through, GV Films will also have a non-exclusive right to the titles.

The movies will add to GV Films' present library of over 6,000 films, mostly Tamil and Hindi.

The Webcasting division is expected to commercially exploit this library of films. The target audience will primarily be the 20 million Indian Diaspora.

Test runs for the Indian market have also been successfully completed.

The present proposal of 2 MBPS Internet connectivity being made available by the telecom companies to the Indian markets will open up further opportunities in this division.

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GV Films plans GDR issue

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