Padmalaya Telefilms shares dip to 52-week low

MUMBAI: Touching a year after Zee Telefilms acquired a strategic stake in Padmalaya Telefilms Limited (PTL) through the acquisition of a substantial stake in PTL's holding company, Padmalaya Enterprises private Limited (PETL), the shares of PTL slumped to their 52-week low on both the premier stock exchanges of the country.

On the Bombay Stock Exchange (BSE), the scrip ended the day at Rs 45.45, down 18.40 per cent, on brisk volumes of almost 354,508 shares. The earlier 52-week low was Rs 56.6. On the National Stock Exchange (NSE), the scrip closed the day at Rs 45.75, down 18.81 per cent with volumes of 139,424.

However, what is noteworthy is the fact that Zee Telefilms was one of the few media scrips which actually rose to Rs 73.25 (up 0.27 per cent) on the BSE; Rs 73 (up 0.07 per cent) on the NSE.

Padmalaya Telefilms posted a net profit of Rs 40.2 million for the quarter ended 31 December 2002 (down 39 per cent) compared to a net profit of Rs 66.1 million in the quarter ended 31 December 2001. Total income also decreased from Rs 274.0 million in the December 2001 quarter to Rs 202.3 million in the quarter ended 31 December 2002.

In a strategic move, Zee Telefilms announced in March 2002 that it planned to acquire a significant stake in Padmalaya Telefilms, one of India's leading entertainment houses with significant presence in film production and distribution, television software production and animation software.

As per the MOU executed between Zee and the promoters of PTL, Zee would acquire majority stake in Padmalaya Enterprises Private Ltd. (PEPL) which is a holding company of PTL. Since this move triggered a change in management control of PTL, PEPL with Zee acting in concert, made an open offer in accordance with SEBI guidelines. Both companies sought the requisite regulatory approvals.

At that time, Zee Telefilms CMD Subhash Chandra said "With this acquisition, Zee continues to consolidate its position as India's largest vertically integrated media and entertainment company. Zee's acquisition of PTL creates an entertainment powerhouse with unmatchable strengths in animation software, Film production-distribution and television content."

At that time, Zee was already a large, established player in the movie, music and animation business. Zee owns ZICA, one of India's best animation production units with over 100 animators with top end skills for cell animation. ZICA is currently focused on the production of Bhagmati, India's first full-length animation movie.

The key benefits of this strategic move for Zee Telefilms at that point of time were:

* Creation of a unified animation studio with capability to deliver high-end animation products for international markets.

* To capitalise on PTL's extensive experience of over 30 years in movie production and distribution.

* PTL's huge library of hit-films with over 300 films complimented Zee's strong library of more than 3,000 movie titles.

* To utilise the well-established production facilities for in-house movie projects. 

* To leverage PTL's direct control over 60 theatres in South India and its wide distribution network in South India.

* To add over 1,500 hours of television software in Telugu, Tamil and Kannada to the existing Zee library (Zee has two satellite channels Bharathi (Tamil) and Kaveri (Kannada) and one cable channel in Telugu serving the Southern market). 

Benefits to PTL

* Zee's existing international operations, with offices in the US, Canada, UK, Dubai, Singapore, Hong Kong and South Africa would help PTL gain direct access to buyers overseas for its animation products.

* Leveraging joint marketing, promotion and product development opportunities in the movie business with Zee.

* Common apparatus for negotiations with the music and movie industry.

* Zee would provide its global platform to PTL for its television software library and animation property by airing on its international channels.

Latest Reads
Green Gold’s Golden Mumbai launch

MUMBAI: Green Gold Animation is all set to hit the green running with its new offshoot Golden Robot. The Rajiv Chilaka-run animation outfit has been wowing everyone with its deals for animation series with both Netflix and Amazon Prime.  But the occasion this time was the celebration of the launch...

Television Production House Film Production
Gujarat elections boost news channel ratings as Republic continues to lead English News

BENGALURU: Rahul Gandhi’s shenanigans and Narendra Modi’s sudden and unexpected belligerence at rallies leading up to the Gujarat state assembly elections have resulted in bolstering sagging news viewership, especially for the English news genre. According to Broadcast Audience Research Council of...

Television TV Channels News Broadcasting
Sunny Leone in Discovery JEET’s show Man Vs Wild

Sunny Leone will be displaying her adventurous side as host of the mega-popular survival series Man Vs. Wild. The iconic series will telecast in Hindi on the soon-to-be-launched GEC Discovery JEET. The new GEC will premiere in the second week of February 2018 and the series will feature the...

Television TV Channels GECs
Times Now appoints Sujeet Mishra as marketing head

Times Network, part of India’s media conglomerate, The Times Group today announced the appointment of Sujeet Mishra as head of marketing, Times Now.

Television TV Channels People
Experience space with BBC's new VR experience

The BBC is giving you a chance fly. Home - A VR Spacewalk is an interactive virtual reality (VR) experience launched today for the HTC Vive and the Oculus Rift, and is available to download for free via the Steam Store and the Oculus Store.

Television TV Channels Factual & Documentary
Sony BBC Earth presents the Best of 2017

Sony BBC Earth revisits some of its most popular episodes of the best shows in a special programming line-up titled Best of 2017 starting 18 December 2017, every night at 7 pm and 11 pm.

Television TV Channels Factual & Documentary
Increased revenue from traditional media boosts Shemaroo numbers

Integrated media content house Shemaroo Entertainment Limited (Shemaroo) reported 18.3 percent higher year-on-year (y-o-y) consolidated total revenue for the quarter ended 30 September 2017 (Q2 FY 2017-18, the quarter under review) stood at Rs 1,345.7 million as compared with Rs 1,138.6 million in...

Television Production House Film Production
21st CF spins-off into new live news & sports co Fox

MUMBAI: After the blockbuster acquisition of 21st Century Fox by The Walt Disney Company, the former has announced that it will spinoff into a new brand Fox’ that will seek to replicate its own success in the newly focussed verticals of live news and sports brands. Using fiscal 2017 as a base, the...

Television TV Channels News Broadcasting
With Star India, Disney emerges as India's largest M&E firm

MUMBAI: Unlike the US, where the merger of The Walt Disney Co and 21st Century Fox’s entertainment assets is between two near equals, the scenario in India is totally different. 21st Century Fox’s India venture Star India is a $1.7 billion dollar media and entertainment behemoth while Disney India...

Television TV Channels People

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories