The Hindu Business Line : DQ Entertainment provides exit route to early investors

Hyderabad, Jan. 24 Animation and gaming company DQ Entertainment, which recently got listed on the Alternate Investment Market (AIM) of the London Stock Exchange raising about $66 million, has provided an exit route to some of the early investors in the company.

While IL&FS, Sara Fund of Japan, India Value Fund have fully exited from the company, other investors like IFC Washington and iLabs, have partly offloaded their stake. The value of the deal was estimated at about $21 million.

However, some of them hold shares on their individual capacity and the promoters including Mr Rusi Brij and 20 others now hold about 27 per cent of the company equity, according to Mr Tapaas Chakravarti, President and Chief Operating Officer of DQ Entertainment.

“We had several options but chose LSE’s AIM as we believe that the market is lot more mature and understands the entertainment business better. Investors are patient with their investment, unlike in India,” he said.

The company may also consider an Indian listing in a couple of years, he said.

Last fiscal, the company registered revenues of $25 million and now commands an order book of over $56 million to be executed in 18 months.

Speaking to media persons, Mr Chakravarti said that the company has entered its next phase of growth, which includes a fully-owned IP and a joint venture lead business where intellectual property will be co-developed and shared.

The company is in the process of picking up 20 per cent stake in a French firm Method Film SA for $2.5 million and is also in the midst of setting up a joint venture company with the Irish firm Telegael.

Unlike the traditional development approach of the animation and gaming sector, DQ Entertainment is partnering with some of the large global players and is co-owning intellectual property. This is expected to generate an additional parallel stream of revenue. It includes the Casper series, not just for television but also for other channels of delivery, and two properties of American Greetings.

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