Will use proceeds from issue of warrants to pay off debt: Prime Focus

Prime Focus has just announced that the company will raise Rs 330 crore via issue of equity warrants at a 6 percent premium to market price. This will take the promoter's stake to 40 percent post conversion and the proceeds will be used towards debt reduction.

In an interview with CNBC-TV18, Namit Malhotra, Founder, Executive Chairman & Global CEO of the company discussed about the same.

Net debt position was in Rs 1,300 crore range as on September 30, he said.

The goal is to use these proceeds from issue of warrants to pare down the debt, he added.

There will be an immediate debt reduction to the tune of about Rs 75-100 crore and the balance will happen over the period of next 12-18 months, said Malhotra.

For full interview, watch accompanying video...