MUMBAI: Pyramid Saimira Entertainment Ltd (PSEL), a Singapore-based subsidiary company of Pyramid Saimira Theatre Ltd (PSTL), plans to raise $75 million (Rs 3 billion) through private equity investors.
“We will dilute 25 per cent stake to raise this amount. We have received term sheets from private equity investors,” Pyramid Saimira managing director PS Saminathan tells Indiantelevision.com.
This will value the subsidiary company at $300 million (Rs 12 billion). “We will be using the funds to ramp up our film distribution business. As we expand our theatre chain, we will need more content. The film purchases for distribution will be funded by the Singapore subsidiary company,” says Saminathan.
Pyramid Saimira Productions Ltd (PSPL), another subsidiary company for film and TV production business, is planning to float an initial public offering (IPO) to raise Rs 1.5 billion.
“We are close to filing draft red herring prospectus with Sebi (Securities and Exchange Board of India),” says Saminathan.
PSPL will dilute 10-12 per cent equity through the IPO and the funds will be used to expand the film and TV production businesses.
PSTL recently bought out Texas-based FunAsia, becoming the first Indian theatre chain to enter into the US market. The acquisition was made through PSTL‘s US subsidiary Pyramid Saimira Entertainment America Inc.
“We will be initially raising debt to expand operations in the North American region. The funding for the expansion in this region will be done through our US subsidiary company,” says Saminathan.
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