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MUMBAI: India Bulls promoter Sameer Gehlaut is showing interest
in the media business. The Delhi-based entrepreneur is buying
around 25 per cent stake in TV content company B.A.G Films
for Rs 262 million.
The acquisition is through a preferential allotment of up
to 20,250,000 equity shares of Rs 2 each at a price of Rs
13 per share. Gehlaut will have to make an open offer for
a further 20 per cent stake which if subscribed totally, would
make him the largest shareholder in the company.
The promoters of B.A.G Films will hold around 37.5 per cent
on the expanded equity. But their stake will go up after conversion
as they are being issued preferential allotment of up to 10,000,000
warrants. The conversion price is fixed at Rs 13 per warrant.
Gehlaut's shareholding will also see change after the conversion.
"Gehlaut has come in as a pure financial investor. We
will be using the funds to meet our expansion plans,"
says B.A.G Films managing director Anuradha Prasad.
B.A.G Films will be investing Rs 160 million in new media
and the animation business. "Besides, we will be retiring
a part of our debt to Yes Bank," says Prasad.
B.A.G Films' radio venture, run through a subsidiary company
B.A.G Infotainment, has an investment outlay of Rs 480 million
including the licence fee paid for 10 stations. B.A.G Infotainment
rcently roped in IDBI Bank and Bank of Baroda for picking
up 10 per cent each.
B.A.G Films will also be issuing stock options of up to 10,000,000
equity shares to its permanent employees at Rs13 per equity
share.
The scrip touched a high of Rs 15.68 on Monday after opening
at Rs 13.40. "The price of the scrip will stay firm and
may see one more surge before steadying," says an analyst
in a broking firm.
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