DQ Entertainment has raised $50 million (about Rs 300 crore) from OL Master Ltd, a credit fund managed by the OCP Asia (Hong Kong) by issuing convertible bonds. The funds will be infused in two tranches -- $35 million now and $15 million at the option of the investor within 12 months after the release of the first tranche.

DQE Chairman and Chief Executive Officer Tapaas Chakravarti said the proceeds will be used to fund over 20 projects currently in the pipeline for production over the next two years and to repay certain debts of about $7.21 million. Part of the funds would also be used for working capital needs as well.

The bonds can be converted into ordinary shares of DQE Mauritius. The conversion of $50 mi worth bonds would currently equal to 56.5 per cent of DQE Mauritius on a fully diluted basis.

Tapaas informed the Bombay Stock Exchange that the holding company and promoter, DQE Mauritius has executed the documents on Tuesday to raise the funds.

Teall Edds, co-founding partner of OCP Asia (Hong Kong), said that the fund liked the “360-degree” approach to monetise its intellectual property.

The board of directors of DQE had been exploring various options to raise funds to support the current pipeline of projects.

Tapaas said the company has an order book worth about $63 million (Rs 382 crore). The pipeline included Robin Hood, Peter Pan season 2, Lassie, Miles from Tomorrow Land and Seven Dwarfs and Me. “We have concluded 24 deals in this financial year,” he said.

The DQE shares closed at Rs 28.90 at the BSE on Tuesday. It registered a turnover of Rs 180 crore in 2013-14 and Rs 52.74 crore for the quarter ended September 2014.

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