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Tag: V Natarajan

  • Pyramid Saimira to raise Rs 844 million via IPO, sets price band at Rs 88-100

    Pyramid Saimira to raise Rs 844 million via IPO, sets price band at Rs 88-100

    MUMBAI: Chennai-based cinema chain Pyramid Saimira plans to raise Rs 844.4 million through a public float to part-finance its expansion plans. This includes refurbishing theatres after taking them on long term lease and installing digital systems of delivery.

    The issue, which opens on 11 December and closes on 18 December, will have a price band of Rs 88 to Rs 100 per equity share of Rs 10 each. The initial public offering (IPO) will be entirely through the book building process.The total fund requirement is estimated at Rs 1.11 billion. The funding will be met through pre-issue capital and internal accruals of Rs 267.5 million, in addition to the IPO.

    For refurbishing the theatres, the company plans to invest Rs 368 million while digitalisation process will absorb Rs 241.4 million. The other big investment of Rs 203.4 million will be towards recoverable security deposit with theatres and multiplexes.

    The company plans to tie up with 120 theatres in A locations and 235 threatres in B and C locations by March 2007. The average length of the lease varies from five to 15 years with the option to extend it.

    Pyramid Saimira has tied up with Delta Electronics, Taiwan, for digital projectors, Real Image Media for video servers and Tatanet for the utilisation of their broadband VSAT infrastructure. Arasor Inc, USA, will provide for next generation laser projection technology, Valuable Media for end-to-end digital cinema solution on pay-per-use basis in 1000 Pyramid theatrical locations and Prasad Labs for digital conversion.

    With focus on tier II cities, Pyramid plans to have a pan India presence. “We are currently present in the southern states. But we are soon spreading out to Punjab, Haryana and Rajasthan,” says Pyramid Saimira Theatre managing director PS Saminathan. The company has tied up with Spirit Global Constructions which shall construct 60 propoerties in Punjab while Swatantra Land & Finance shall offer 22 properties at Haryana and 20 properties at Rajasthan.

    “We plan to have over 2000 screens in 1550 locations across India with 58.75 million sq. ft. under operational management by 2010,” says Saminathan. The company currently has 148 screens operational with over 1.8 million sq. ft.

    The company is close to signing a deal with Chinese government to run 7,000 theatres on the mainland. Bennett Coleman and Company Ltd (BCCL), publishers of The Times of India and The Economic Times, has bought a small stake in the company.

    Among the promoters of Pyramid Saimira include noted Tamil film producer V Natarajan and Saminathan who owned a cable TV network in parts of Tamil Nadu.

  • Pyramid Saimira in expansion mode, plans Hindi foray

    Pyramid Saimira in expansion mode, plans Hindi foray

    MUMBAI: The Chennai-based digital theatre chain company Pyramid Saimira Theatre Limited (PSTL) has unveiled its expansion plans.

    To start with, the company is planning to enter the Hindi speaking markets by the third quarter of 2006. Reportedly, the investment for the expansion is pegged at Rs 3.5 billion.

    PSTL, which is operating about 100 theatres, will increase the tally to 400 by the end of FY07 fiscal end through its Networked Mega Digital Theatre Chain project, according to an official release.

    “Pyramid Saimira is currently operating a theatre chain of more than 100 theatres, which we plan to increase to 400 by the financial year end 2007. From the third quarter of 2006, we plan to make a foray into Hindi speaking markets and add one screen a day also in North India. By the turn of this decade, the company plans to manage and operate on its own about 2000 screens and in addition have around 4000 screens as franchisee screens across India,” says PSTL MD Saminathan.

    The company has projected a top line growth of Rs 8 billion (USD 178 million) by 2010, which represents 6 per cent of the industry, adds the release.

    Pyramid has technical support tie-ups with Tata Net for communication technology, Prasad Labs for conversion of films into digital, Delta Electronics as well as Arasor Technology for projectors, and Real Image for software solution providers.

    Saminathan further adds that Pyramid is setting up an integrated Network Operating Center (NOC), which will convert films into Digital, transmit these films using satellite medium to various theatres across the country in a secured encryption mode.

    Using Digital Rights Management, the company will exhibit the films and other contents in digital mode without physical film prints. This will bring about a saving of Rs 60,000 to Rs 70,000 per movie per theatre and approximately save Rs 2 million per theatre per annum.

    PSTL chairman V Natarajan says, “Digital Cinema is not about replacing an ordinary projector with a digital projector. Through a change in technology we bring a major change in relationship and structure of the exhibition industry as a whole. Just like the hotel industry, exhibition industry will see the emergence of separation of ownership and management especially on a professional note.”

    By converting existing theatres into digital, PSTL expects to function as the delivery medium for entertainment and educational content, according to the release.