MUMBAI: Adlabs Films is planning to raise Rs 6 billion (Rs 600 crores) by way of rights offer of equity shares to the company’s shareholders, subject to necessary sanctions and applicable provisions of law.
The funds raised through rights issue would be utilized for expansion and growth opportunities including investment in various projects in India as well as overseas.
The company plans to expand its worldwide exhibition screen count from 428 screens in April 2009 to over 570 screens in next one year.
Also in the pipeline are plans to establish 1200 member media BPO, specializing in content processing, image enhancement and restoration services. Adlabs Films is also planning to set up a 200,000 sq ft. studios, sound stages at Film City in Mumbai along with enhancing inventory of film and broadcast cameras, lights and post production infrastructure.
The Board of Directors have empowered its committee to decide upon the terms and conditions including the price, share entitlement ratio, timing and other details of the rights issue.
Reflecting the confidence in the business and growth strategy, the promoter group has offered to subscribe to any shares remaining unsubscribed by the shareholders, and the board has approved the same.
Adlabs Films CEO Anil Arjun said, "We are in a significant growth trajectory and have made strategic investments for scaling up business operations to become the country’s leading player across the entire film and media services value chain. 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."