Mumbai, May 24
Prime Focus Ltd, a post-production and visual effects service house, plans to enter the capital market with an initial public issue of Rs 115 crore, through the book building process. The issue opens on May 25 and closes on May 31.
The price band has been fixed at Rs. 450 to Rs. 500 per equity share of Rs. 10 each. The capital raised would be used to finance the company's expansion plans in India and overseas.
Prime Focus intends to set up digital studios at Hyderabad, Los Angeles, London and Dubai, said Mr Namit Malhotra, Managing Director, at a press conference here on Monday.
The company will also set up camera rental facility and an outsourced centre for visual effects and animation.
Prime Focus had recently acquired 55 per cent stake in the UK-based media service company VTR Group.
It expects to acquire other media service companies to have an integration between the Indian and overseas studios, Mr Malhotra, said.
The post-production industry, currently estimated at Rs 500 crore, is expected to grow to Rs 1,000 crore by 2007. Adlabs Films, a strategic investor in Prime Focus, has 4.66 per cent of the existing capital and Reliance Capital has 14.53 per cent stake.
Mr Rakesh Jhunjhunwala and Ms Rekha Jhunjhunwala hold 8.5 per cent and promoters and friends the rest.
The company recorded revenue of Rs 33.57 crore for the first nine months ended December 31, 2005.
ICICI Securities Ltd and Centrum Capital Ltd are the book running lead managers of the issue and Intime Spectrum Registry Ltd is the registrar.