BAG Films & Media Ltd has raised $35 million through a foreign currency convertible bond (FCCB) issue. The amount raised will be towards meeting capex requirement for its proposed four TV channels.
Anurradha Prasad, Managing Director, BAG Films & Media Ltd, said, “We will be investing this money for the forthcoming TV channels. With this, we would complete our fund requirement.”
BAG Films is making a combined investment of Rs 4 billion in its broadcasting business. This includes two channels in the news space, one on lifestyle, and the fourth channel will be all about mind, body and soul and will be called ‘Bliss’. The news venture alone will consume Rs 2.5 billion.
BAG Films has already lined up Rs 2 billion and will be diluting 25 per cent stake in each of its two broadcast companies -- BAG Newsline Network and BAG Glamour. While the forthcoming news channels are being housed under BAG Newsline Network, the non-news ventures will fall under the gamut of BAG Glamour. The channels are expected to go on air by the first week of November 2007.
Actor Shah Rukh Khan and his wife Gauri will buy a 10 per cent stake in BAG Glamour, which is being promoted by Anurradha Prasad.