The Hindu Business Line : DQ Entertainment raises $56 m through London Stock Exchange

Hyderabad/Mumbai, Dec. 21 DQ Entertainment Ltd, an animation and game art company, has raised $56 million through its listing on the Alternative Investment Market, London Stock Exchange, on December 18.

The Hyderabad-based company plans to use the funds raised primarily for the expansion of several production facilities in India, according to a press release.

Increasing sales and distribution network worldwide, direct and co-investment in global partnerships for intellectual property rights, and immediate European acquisitions and joint ventures which are on the radar of the company would also get the fund backing.

DQ Entertainment, which already has strategic alliances for co-producing several international branded properties for TV series and films, has a current co-production and service order book of close to $94.6 million.

Listing at LSE is part of the company’s growth strategy. Its international presence and partnerships would give a sizeable boost to its international profile with the move, said Mr Tapaas Chakravarti, Chairman and Managing Director and Chief Executive Officer of DQ Entertainment.

At present the company has production facilities in Hyderabad, contracted production facility in Manila, and sales outfits in Paris, Los Angeles and Tokyo. It is into 2D/3D traditional and digital, VFX including TV series, feature films and direct-to-home videos.

Recently, DQE set up a New Media Initiatives Division to tap the opportunities in the domestic market. It intends to develop IPR in the form of TV series and features.

The company is also foraying into publishing comics and has recently entered the home video market with a strategic alliance with Moser Baer for distribution of their animation series, Pet Pals and Ratman, in collaboration with Gruppo Alcuni and Stranemani of Italy.

Acquisition plans

Some of the proceeds will be used to finance their acquisition and joint venture plans. It has plans to acquire 20 per cent stake in the French company Method Films by the end of this month. Other plans include a 50-50 joint venture with an Irish company Telegael Ltd and a 51-49 tie-up with Onyx Films SA.

The company is also involved in creating the art assets for gaming companies. “It is a high growth sector and especially the US they need our help with their art assets,” said Mr Chakravarti. It already produced AAA games like The Fantastic Four, Burn Out, FIFA, part of Harry Porter and the Simpsons.

On not listing itself in the Indian markets, Mr Chakravarti, said it is mainly because the company has an international presence and not that visible in India. “As for India, we will be entering the markets in a big way by 2008 or may be in 2009”, said Mr Chakravarti. It is in talks with a few major Indian production houses for they entry into the Indian film markets. “We would basically be making both live action and animated films for Bollywood and would be then later dubbing them into Telgu and Tamil and maybe other regional languages too,” Mr Chakravarti added.

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