MUMBAI: Compact Disc India has decided to withdraw its decision to list on London Stock Exchange’s Alternative Investment Market.
In June last year, the company had made known plans to list its subsidiary company MediaOne Ventures Limited on AIM with an aim to raise $ 50 million.
Additionally, the company has also scraped its plans to foray into live-action films. Compact Disc India, which had announced plans of producing two live-action films namely – Guru of Sex and Playing With the Enemy, will now only concentrate on animation films. Playing With the Enemy was to be made on a budget of $ 30 million along with WhiteLight Entertainment.
Speaking to Businessofcinema.com, Compact Disc India managing director Suresh Kumar says, "We were planning to list on AIM in order to raise funds for our four projects – two animation and two live action. For the animation films, we have already raised money from private equity funds and since we are not planning live-action films anymore, we do not require the additional funds."
Regarding the company’s decision to withdraw from its live action film production plans, Kumar adds, "We were advised by our advisors to first consolidate our position in the animation movies’ space over the next two – three years. Once we have an experience of about 10 years in the industry, we will think of foraying into live action."
The company’s board decided that it should not diversify into the production of live-action films, and strictly remain within the core business area viz. animation films (outsourced or own productions).
Additionally, the company is planning to add two more animation studio facilities in Trivandrum and Chandigarh, thus taking its studio total to five. "We are planning to invest a total of Rs 1.10 billion (Rs 110 crores) for our two new facilities. We have already applied for the funds and it should come through in the next 15 – 20 days," Kumar informs.
On the other hand, Compact Disc India has reported a net profit of Rs 195 million (Rs 19.50 crores) for 2007-2008, which was 138 per cent up in comparison to Rs 81.80 million (Rs 8.18 crores) in the FY 2006-2007. Net revenues of the company stood at Rs 1.03 billion (Rs 102.78 crores), a 104 per cent increase compared with Rs 502.9 million (Rs 50.29 crores) during the last fiscal.
The annualized earning per share (EPS) recorded at Rs 20.51. The company has seen a a growth of over 493 per cent in over the last five years. At present, the Company is working on some international assignments worth $ 65.80 million (Rs 282 crores).
The performance is a culmination of strategic initiatives taken by the company on several fronts in the areas of acquiring international projects, deepening of core competencies and creating associates world across.
Additionally, Laser Infomedia Ltd., a promoter’s group company will set-up a developing and publishing gaming software studio at New Delhi in collaboration with Golden Games Pte Ltd., Singapore within the fiscal year 2008-09. CDI will invest maximum upto 15 per cent of the equity capital of this company.
The company has also accepted the resignations of its managing director Gautam Seengal, who has set-up a private equity fund and V S Sundararajan, who is shifting his base to the US. Rashmee Seengal, founder director of the company has re-joined the Board.
The company has also approved the business plan for the year 2008-09. The gross estimate revenues are Rs 1.83 billion (Rs 183.10 crores) and net profits are Rs 3.84 million (Rs 38.40 crores).