Dec 08, 2010, 04.53 PM | Source: CNBC-TV18

Did not block conversion of FCCBs: Shree Ashtavinayak

Dhilin Mehta, CMD of Shree Ashtavinayak Cine Vision, in an interview on CNBC-TV18 clarified that the company is seeking legal guidance and will make public the findings of their legal team.

Dhilin Mehta, CMD, Shree Ashtavinayak Cine Vision
A whole host of allegations have been floating around Shree Ashtavinayak Cine Vision , the latest being that this movie producing company is preventing two big hedge funds from converting FCCBs into shares and that they are hand in glove with shareholders who are instituting such proceedings to prevent the conversion of FCCBs into shares.

Dhilin Mehta, CMD of Shree Ashtavinayak Cine Vision, in an interview on CNBC-TV18 clarified that the company is seeking legal guidance and will make public the findings of their legal team.

A meeting to discuss the conversion of FCCBs was to be held on September 20 but was cancelled by management. The reason was that a complaint was filed by minority shareholders, he said.

Below is a verbatim transcript of his interview with CNBC-TV18s Sonia Shenoy and Reema Tendulkar. Also watch the accompanying video for more.

Q: There are many media reports doing the rounds about Shree Astavinayak preventing big shareholders from converting the FCCBs into shares. Is that true?

A: No, there is no substance in the allegations which are mentioned here. Our legal advisors are already on the job and we would have a positive result soon. We are there with the board holders and ultimately the conversion price was finalized at the time of the FCCB issue. The current share price is already above the conversion price.

Q: What was the reason behind why you cancelled that meeting that was supposed to be held on the September 20 for conversion of FCCBs?

A: The reason was that the complaint was filed by minority shareholders. Exact details will be made known when I speak to my legal people but otherwise we are hopeful that it will be sorted out.

Q: Are you seeing any big kind of selling by FCCB holders at this point in time?

A: That I cant comment on because I am not a person of the market. It depends upon the demand-supply situation.

Q: Can you give us some clarity on how much you have converted post the stock split and at what price and how much is left to be converted?

A: Around 14 million is yet to be converted and out of the rest 34 has been converted. We are hopeful that once this issue is sorted out it will be converted soon.

Q: Whats the current price of the FCCB conversion into shares and is that the point of contention?

A: I can only talk about the conversion price post split and post bonus which comes to around Rs 9.

Q: What is the way forward now?

A: The way forward is that we are already on the job and this year we released 3 films - Golmaal, Dabaang and Khatta Meetha. We are ready with a film with Govinda and Neeraj Vora which is scheduled to be released early in next year and of course Rockstar which will be released in the next financial year.

We have signed three more movies with Rohit Shetty of which one will be released in 2011, the other two will be releasing in 2012.

Q: Can you tell us the current total outstanding debt which includes the FCCB?

A: The total debt will be around Rs 250 crore but most of the debt is project related. It will be paid off as and when the project gets released. We are coming out with various projects.

Q: When will shareholders get more clarity on the discrepancies that have occurred and the stay order that has been put in place?

A: That we will declare at the right point of time. We are on the job with our legal advisors and once it is sorted out we will be happy to declare the findings.

Q: Any kind of timeline?

A: There is no given timeframe but we are doing our best to sort this out as soon as possible. That I can assure.

Ashtavinayak stock price

On , 2014, Shree Ashtavinayak Cine Vision closed at Rs 0.81, up Rs 0.00, or 0.00 percent. The 52-week high of the share was Rs 1.21 and the 52-week low was Rs 0.46.

The latest book value of the company is Rs 6.41 per share. At current value, the price-to-book value of the company was 0.13.

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