BAG Films' pref allotment to Gehlaut

3546 Investors following BAG Films. Share this News with them.

0

Like this story, share it with millions of investors on M3

BAG Films' pref allotment to Gehlaut

Media house BAG Films is making a preferential allotment of 2 crore shares or almost 25% of its equity at Rs 13 a share to Indiabulls' promoter Sameer Gehlaut. To tell us more joining us now on the line from delhi is Anurradha Prasad, Managing Director of BAG Films.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about BAG Films See previous management interviews See what other Experts & Brokerages are saying about BAG Films BAG Films BSE | NSE 25/05/12 Are Mutual Funds betting on BAG Films? Other Stocks in this news IDBI Bank | Indiabulls Financial Services |

Media house BAG Films is making a preferential allotment of 2 crore shares or almost 25% of its equity at Rs 13 a share to Indiabulls ' promoter Sameer Gehlaut.

Anurradha Prasad, Managing Director of BAG Films says that the first phase of  expansion is over and now the second phase of expansion has started and this money is going to float for their animation divison.

Excerpts from CNBC-TV18's exclusive interview with Anurradha Prasad:

Q: You have issued about 2 crore equity shares to raise about Rs 26 crore to one of the promoters of Indiabulls. What would you be needing this money for and in addition to this, what sort of equity dilution has this led to?

A:  Basically, we are going to look at our expansion plan which is again unfolding, we have always believed in consolidation and then expansion. We have done the first phase of our expansion and now we are getting up for our second phase of expansion and this money is going to float for our animation.

We have licenses to operate ten FM radio stations in northern part of India, in cities like Patiyala, Hisar, Karnal, Simla. So we are going to put this money there. We are a content company and we do a lot of content on the mobile and telephony, so we will be putting some part of this money into that.

Q: You radio business comes from BAG Infotainment, what is the relationship between the two companies?

A: Right now, it is a 100% subsidiary, and in BAG Infotainment, we have got IDBI at the moment with 10% stake.

Q: Bank of Baroda too holds 10% stake in this, what is the total holding, if you can clarify of IDBI and Bank of Baroda to date and what is the value of that holding?

A: Bank of Baroda's letter of intent is with us but we have not signed the deal yet, so IDBI is firmly in BAG Infotainment and they have picked up Rs 10 share with the Rs 2 crore capital infusion into the BAG Infotainment Pvt Ltd, which is the operating company for the radio licenses.

Q: What is the expansion plan for it? As we understand it is close to about Rs 48 crore that the company is looking to spend on this particular division of the company?

A: Yes, that is true, between Rs 45-48 crore is what we are looking at, the whole plan and right now it has started unfolding. We have already done the common transmission link and we will be starting our first channel sometime in March.

Q: What is the promoter's holding in the management at the moment?

A: Right now, we have 49.43%, which is the pre-Sameer Gehlaut allotment and now it will come to 36.97%, about 37%.