StanChart PE to invest $35 mn in Prime Focus

MUMBAI: Prime Focus Limited (PFL), a global provider of creative and technical post production services for broadcast, commercials and films, will receive $35 million in equity investment from Standard Chartered Private Equity (Mauritius) to support its growth plans.

The company is also in talks with lenders to raise long term debt to support redemption of $55 million of FCCBs (foreign currency convertible bonds) towards the end of this year.

The equity investment by Standard Chartered Private Equity will be via allotment of equity shares on a preferential basis at Rs 53 per share.

Prime Focus MD & CEO Ramki Sankaranarayanan said the equity investment will make Standard Chartered Private Equity a long term partner in the company.

In addition, the company will issue equity warrants to its promoter Namit Malhotra, representing a right to subscribe to equity shares, for an aggregate amount of Rs 1.04 billion on a preferential basis. These warrants are convertible into equity shares at a maximum price of Rs. 53 per share.

PFL shares closed 0.94 per cent up at Rs 53.65 on Thursday on the National Stock Exchange.

PFL has convened an extraordinary shareholders‘ meeting (EGM) on 3 November to seek shareholders‘ approval for these equity transactions.

According to PFL, investment by Standard Chartered Private Equity marks an important milestone for the company, and will go a long way in helping the company to sustain its future growth plans.

PFL has a team of over 4,500 people with state-of-the-art facilities across the key markets of North America, the UK and India.

The company also said that promoter Namit Malhotra‘s investment in the company reinforces the promoter‘s continued commitment towards the business.

Sankaranarayanan said for the redemption of FCCBs, the company is in a fairly advanced stage of negotiation with various lenders for long term loans.