The Hindu Business Line : BAG Films up on FCCB price hopes

BAG Films and Media is witnessing hectic activity on the bourse on hopes of a higher valuation of its proposed foreign currency convertible bonds (FCCB) issue. Though on Thursday, the Rs 2 face valued shares finished 2.22 per cent lower at Rs 44, it attracted a volume 4.09 lakh on the BSE and 2.14 lakh shares on the NSE, much higher than their average quantity on the bourses. A company official told Business Line from Noida that the FCCB issue price inde ed could be higher than the current market price. However, the company is yet to decide on the exact price after RBI’s recent circular. “The issue price is expected to be decided shortly in conformity with the central bank’s guidelines,” the official explained. The board of BAG Films and Media on July 28, 2007 had approved raising up to $35 million by way of FCCBs. The company official, however, declined to comment on the market rumour that film star Shah Rukh Khan and his family members were picking up 10 per cent stake in one of the subsidiaries of the company.

BAG has spawned two unlisted subsidiaries — BAG Glamour Pvt Ltd and BAG Newsline Network (P) Ltd — recently for launching TV channels (news and non-news based). It has also set up 50:50 animation joint venture — Seiun and BAG Films – with a Korean company. The fast expanding company has also allowed strategic investments this year by an individual and by High Growth Distributors Pvt Ltd.

K.S. Badri Narayanan

Jayanta Mallick

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