The Foreign Investment Promotion Board (FIPB) has given its nod to the much awaited FDI proposal of BAG Films and Media Pvt Ltd for induction of foreign investment and equity for its upcoming four channels. The proposal has now been forwarded to the Finance Ministry for approval.
BAG had earlier sent files for two proposals – one was for induction of foreign investment, the other was to get in foreign equity via the Foreign Currency Convertible Bond (FCCB) route.
The raised amount would be towards meeting Capex requirements for its proposed TV channels. The company has invested around Rs 400 crore in its broadcasting business. BAG has plans to raise around Rs 140 crore through an FCCB issue.
Mauritius-based foreign institutional investor Fidelity (FID Funds Ltd) had announced its intention to take a 10 per cent stake in BAG Films and Media in September 2007. The investment is to the tune of Rs 62 crore.
Confirming the development, Anurradha Prasad, MD, BAG Films and Media, said, “We have received the FIPB clearance; we are waiting for the approval of the Finance Ministry.”
BAG has already launched its Hindi news and current affairs channel News24, while the second of the four proposed channels, E24, which would be an entertainment related channel, is expected soon. Thereafter, the company would go for the remaining two channels – Life24, a glamour and lifestyle channel, and Bliss24, a wellness channel.