MUMBAI: Adlabs Films Limited has approved raising up to Rs 6 billion via rights issue of shares.
The funds would be utilised for expanding its exhibition screens to over 570 in the next one year, setting up art studios, buying equipment and for setting up media business process outsourcing units.
Says Adlabs CEO Anil Arjun, “The proposed rights offering will facilitate the company to build on its strengths in the film and media space and provide an opportunity to the existing shareholders to participate in the growth.”
Indiantelevision.com had earlier reported that Adlabs had plans to invest Rs 2 billion in FY‘10 including Rs 800 million for studio and was considering a rights issue to raise long term resources.
Adlabs is setting up a 200,000 sq. ft. studio at Film City in Mumbai. The company is also establishing a 1200-member media BPO, specialising in content processing, image enhancement and restoration services. The screen count will go up from 428 screens in April ‘09 to over 570 screens in the next one year.
“The funds raised through rights Issue will be used for expansion and growth opportunities including investment in various projects in India as well as overseas,” Adlabs said.
The promoter group has offered to subscribe to any shares remaining unsubscribed by the shareholders.
Adlabs has a presence across the segments of exhibition, film and media Services and television software.
Leave a Reply