Standard Chartered Private Equity unit based in Mauritius is to invest $35 million in Prime Focus Ltd. The Indian visual entertainment services group’s company provides creative and technical services to the film, broadcast, and the advertising market.
The PE fund is to subscribe to equity shares of the company on a preferential basis for an aggregate amount of $35 million (Rs 184 crore) at a maximum price of Rs 53 per equity share.
In addition, the company will issue warrants to the promoter Namit Malhotra, representing a right to subscribe to equity shares for an aggregate amount of Rs 104 crore on a preferential basis.
These warrants are convertible into equity shares at a maximum price of Rs 53 a share, Prime Focus said.
The management of Prime Focus has been planning to repay foreign currency convertible bond worth $79 million. In 2007, the company had kick-started the process to raise funds for its $43 million acquisition of two US-based post-production and visual effects firms, Post Logic Studios and Frantic.
Prime Focus is to convene an extraordinary shareholders’ meeting on November 3 to seek approval for these transactions.
In a statement, the company said an investment by Standard Chartered PE marked an important milestone and would go a long way in helping the company sustain its growth plans.
Ramki Sankaranarayanan, Managing Director and CEO, Prime Focus, said: “We are in the process of raising long term debt to support the redemption of the FCCBs due later in the year and are in a fairly advanced stage of negotiation with various lenders.”
Earlier this week, Standard Chartered Private Equity had invested $32 million in Varun Beverages.