The company will sell VFX business for up to Rs 270 crore, subject to approval of the shareholders.
Shares of Prime Focus declined more than 2 percent intraday on August 23 after the company received board approval for the sale of VFX business.
The stock shed nearly 64 percent of its value in last one year. It was quoting at Rs 34.00, down Rs 0.85, or 2.44 percent on the BSE at 1254 hours.
"....approved the sale of its business division, VFX business, as a going concern, on a slump sale basis, to DNEG Creative Services Limited, a subsidiary of the company," the media services provider said in its BSE filing.
The company will sell VFX for up to Rs 270 crore, subject to the approval of the shareholders, it added.
Prime Focus said the business transfer agreement is expected to be executed within 120 days from August 22, 2019.Prime Focus is engaged in the business of providing post-production services while DNEG Creative Services provides VFX and 3D conversion services.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.