Bollywood looks to IPOs for funding

MUMBAI: Making a movie was once considered a high-risk venture, and producers had to come up with their own finances or take loans from private financiers, and sometimes even borrow from the crime world. As the saying goes “the show must go on.”

However, Bollywood IPOs seem to the recent secret mantra for success. Films like Black, Krrish and Mangal Pandey that were financed by public offerings. Ram Gopal Varma recently took his production house, Factory, public and companies such as Mukta Arts and Pritish Nandy Communications have gone down the IPO route with much success paving a way for others.

There are also talks that the Aamir, Shah Rukh and Salman are thinking of taking their production companies public. Similarly, Ajay Devgan and his actress wife Kajol have similar plans with their company, Devgan Entertainment and Software. As this trend continues hopefully this would mean that producers would have larger budgets and can take on bigger projects, leading to better movies

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