PFT raises Rs 45 crore through optionally convertible debentures

MUMBAI: Prime Focus Technologies (PFT), the technology subsidiary of Prime Focus is really upping the ante, as it raised Rs 45 crore through a private placement of optionally convertible debentures (OCDs) from a diverse base of High Net-worth Individuals.

The investors will have an option to convert up to 25 per cent of the total principal amount or around Rs 11 crore into equity of PFT after two years. The firm said this puts a base equity valuation of PFT at Rs 1,100 crore. This means the unnamed investors may get around one per cent stake for part conversion of the OCDs.

The company will use the fund raised to fuel its expansion plans of cloud technology product, namely CLEAR in the global markets and also to peel debt.

“Through this attractively structured instrument, we have secured growth capital while broad-basing our investor base and at the same time creating a compelling opportunity for shareholder value creation at PFT as well as the ultimate shareholders at PFL level,” said PFT founder and CEO Ramki Sankaranarayanan in a statement.

CLEAR Media ERP claims to be a pioneering solution and market leader with the world’s biggest broadcasters and distribution networks using it for managing their revenue and time critical content operations. PFT’s innovative hybrid cloud technology platform virtualises the content supply chain and helps media and entertainment organisations manage the business of content. CLEAR already hosts and manages over 350,000 hours of content and delivers more than 200 TV shows a day.

PFT has grown at over 150 per cent on a year-on-year basis since inception six years ago and aims to replicate its initial success with broadcasters in the North American studio production segment, the statement said.

Recently, PFT acquired US-based DAX LLC, a provider of cloud-based production workflow and media asset management applications, for Rs 56 crore in a performance-linked transaction.

DAX is the creator of the Primetime Emmy Award winning Digital Dailies, which is the de facto industry standard in TV production.

CLEAR, PFT’s award-winning Hybrid Cloud technology enabled Media ERP platform and digital content services help broadcasters, studios, advertisers, sports bodies, news agencies, the government and service providers drive creative enablement, enhance ecosystem efficiencies and sustainability, reduce cost and realize new monetisation opportunities.

PFT works with major content owners like Bloomberg, Disney, Warner Bros., News Corporation owned Star TV, Zee TV, Eros International, Sony Music, Viacom 18, MSM, BCCI (Board of Control for Cricket in India), IPL (Indian Premiere League), Hindustan Unilever Limited, The Associated Press, A & E TV Network and Schawk!

Prime Focus’ worldwide network of studios and WorldSourcing model supported by a Global Digital Pipeline allows PFT to offer customers transformational solutions that help them virtualise business processes around content and manage the business of content better.

PFT had announced a net profit of Rs 2.69 crore from revenues of Rs 52.44 crore for the quarter ended 31 December, 2013. This is a big jump from the Rs 51.07 crore loss posted in the same time the previous year from revenues of Rs 43.94 crore.

The technology business and the visual effects business contribute to about 84 per cent of the company’s revenue. The technology division alone grew 112 per cent year-on-year in Q3-FY14 driven by an increasing adoption of CLEAR as well as addition of new services around it, the company said during its earnings call.

Following the announcement yesterday, Prime Focus’ shares hit a high of Rs 31.15 and a low of Rs 29.70 so far during the day. The stock had hit a 52-week high of Rs 43.05 on 9 April 2013. The stock had hit a 52-week low of Rs 23.75 on 5 December 2013.

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