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Balaji Films plans to raise Rs 45 cr through private placement

29-August-2002
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Balaji Films plans to raise Rs 45 cr through private placement

Balaji Films is planning to raise around Rs 45 crore through private placement for production of movies. The company has appointed Ernst & Young to formulate a business plan. The idea is to present a corporate strategy to film production. Ernst & Young, however, has not been given the mandate to raise funds for Balaji Films.

According to sources, Balaji Films is not a listed company and is privately held by actor Jeetendra Kapoor and his family. The company has lined up four movies, the first of which is slated for release this December. The film will cost Rs 10-12 crore.

Though Ernst & Young is still working on the business plan for the company, the consultancy firm feels that a few low-cost movies between Rs 4-5 crore would be needed as a de-risk model. Ernst & Young will suggest the debt and equity ratio of the company, recommend how many movies should be produced, and make financial projections.

The strategy for fund-raising will depend on the outcome of the first movie. The company will make a business plan to produce around 7-10 movies a year.

Balaji Films is a newly floated company for movie production. Balaji Telefilms, the listed company, does not plan to get into film production. The earlier company for film making, promoted by Jeetendra and his family, was called Shri Siddhivinayak.

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