Moneycontrol Bureau
Shares of Balaji Telefilms climbed more than 14 percent intraday Wednesday after the board's approval for demerger of film production business of BMPL and merger of Bolt with the company.
The board of directors, on September 27, approved the composite scheme of arrangement between the company and its two wholly owned subsidiaries - Balaji Motion Pictures (BMPL) and Bolt Media, and their respective shareholders & creditors.
"....approved the demerger of film production undertaking of BMPL and vesting of same in the company, consequential reduction in share capital of BMPL and the amalgamation of Bolt with the company," the Mumbai-based film production house.
BMPL is engaged in the business of production and distribution of motion pictures and films while Bolt is in the business of production of non-fiction, fiction, factual television shows, event management etc.
Balaji Telefilms has net worth of Rs 612.78 crore and revenue of Rs 256.85 crore in FY16 while BMPL & Bolt have negative net worth of Rs 47.58 crore and Rs 1.74 crore with revenue of Rs 22.82 crore & Rs 0.65 crore in same period, respectively.
The company said there would be no change in its shareholding and the scheme did not involve any cash considerations but it will reduce cost & improve operational efficiencies. Other reasons for scheme of arrangement are consolidation of business operations and streamlining of group structure. At 10:53 hours IST, the scrip of Balaji Telefilms was quoting at Rs 99.80, up Rs 9.65, or 10.70 percent on the BSE.Posted by Sunil Shankar Matkar
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