Balaji Telefilms Limited has approved a preferential issue of 1,07,20,000 equity shares at Rs 140 each, aggregating to Rs 150 crore to Atyant Capital India Fund – I, Vanderbilt University, GHI LTP LTD., GHI HSP LTD. and GHI ERP LTD., subject to necessary approvals.
The issue price represents a 26% premium over the average of the weekly high and low of the volume weighted average share price of the company during the past 26-week period. The proposed issue will result in a dilution of 14.1% of the equity share capital of the company and the post-issue promoter and promoter group holding in the company will be 40.6%.
The proceeds of the issue will be utilized to catapult the launch and growth of ALT Digital Media Entertainment Limited (ALT Digital Media) – the group’s foray into the B2C digital content business segment – the next growth driver for the company’s operating strategies.
Backed by best-in-class technology, ALT Digital Media will operate as subscription video on demand (SVOD) based over the top (OTT) platform and targeted towards urban Indians and Indian diaspora. Leveraging Group’s unmatched position and creative abilities in both television and film content, ALT Digital Media will create highly differentiated, original digital content for the entire connected ecosystem spanning mobile devices, web, smart TVs and game stations.
ALT Digital Media is reflective of the company’s strategic intent to build a consumer facing brand by creating enjoyable, engaging content for digital audience globally and monetising the incredible potential of original on-demand entertainment.
The preferential issue of equity shares is in accordance with Chapter VII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended, and is subject to approval from shareholders at the ensuing Extraordinary General Meeting to be held on March 05, 2016. Accordingly, the equity shares to be allotted pursuant to the issue shall be locked-in for a period of one year.
The transaction was facilitated by Axis Capital Limited, being the sole investment banker and advisor for the fund raise.