MUMBAI: Balaji Telefilms has received shareholder approval for a Rs 130.68 crore preferential share issue following e-voting conducted from 7-10 January, 2025 and an extraordinary general meeting (EGM) held on 11 January 2025. The scrutiniser of the ballot results, declared that all the shareholders who had taken part in the evoting had given their consent.
The preferential allotment involves issuing 1,78,59,776 equity shares of face value Rs 2 each at a price of Rs 73.17 per share, as determined in compliance with Sebi regulations. This proposal, first approved by the board of directors on 19 December 2024, aligns with the company’s strategic objectives and funding requirements. The issue aims to raise funds for strategic initiatives, including movie production, music rights acquisition, and digital content development.
Key Details of the Preferential Issue:
* Promoter participation proposed: Ekta Kapoor, a promoter of Balaji Telefilms, will invest Rs 24.99 crore, increasing her stake from 18.16 per cent to 18.30 per cent post-issue.
* Major proposed non-promoter allottees:
o Atyant Capital India Fund I: Rs 20.67 crore (increasing stake from 4.02 per cent to 5.78 per cent).
o Vanderbilt University (via Atyant Capital Management): Rs 20.67 crore (stake rising from 4.51 per cent to 6.02 per cent).
o Gothic Corp: Rs 23.15 crore (stake increasing from 4.76 per cent to 6.69 per cent.
o The Duke Endowment: Rs 8.27 crore (stake rising from 1.76 per cent to 2.44 per cent).
o Other Notable Investors: Gothic HSP Corp (Rs 4.96 crore, stake going from 2.18 per cent to 2.42 per cent) , Employees’ Retirement Plan of Duke University (Rs 4.96 crore, stake going from 0.99 per cent to 1.41 per cent), and Sanjiv Dhireshbhai Shah (Rs 23 crore, stake going from zero to 2.6 per cent) will collectively contribute over Rs 32 crore,
Proposed fund utilisation:
The proceeds of Rs 130.68 crore will be deployed across:
Movie production: Rs 65 crore (49.74 per cent).
Music rights & digital content: Rs 33.18 crore (25.39 per cent).
General corporate purposes: Rs 32.5 crore (24.78 per cent), including strategic growth initiatives, brand building, and contingency planning.
Balaji Telefilms has committed to utilise the funds within 24 months. This strategic capital infusion aligns with the company’s goals to strengthen its core operations and expand its content offerings across platforms The move demonstrates robust shareholder confidence and the company’s commitment to delivering value.