MUMBAI: GV Films has altered the scheme of de-merger, which was originally approved by its board of directors earlier this year.

GV Films was supposed to de-merge into three entities that would result in the formation of two new companies namely – GV Studio City Ltd and GV Technologies Ltd along with the parent company GV Films Ltd.

Now the company’s committee of directors (CoD), at its meeting held on 1 October, had decided to modify a portion of the Scheme to the effect that, the face value of GVFL (de-merged company) will remain at Rs 10 and not be reduced to Re 1 as was decided earlier.

As against the reduction in face value of shares, it has now been decided to cancel 31,33,98,000 equity shares of Rs 10 of the de-merged company.

Further, no change in share swap ratio was being considered.

The Scheme of de-merger now proposes the following for every three fully paid-up equity shares of Rs 10 each held in G V Films Ltd:

1) One fully paid up equity share of Re 1 each of G V Studio City Ltd and

2) One fully paid up equity share of Re 1 each of G V New Media Technologies Ltd

Earlier, the Scheme of de-merger proposed the following for every three fully paid-up equity shares of Rs 1 each held in G V Films Ltd.

1) One fully paid up equity share of Re 1 each of G V Studio City Ltd and

2) One fully paid up equity share of Re 1 each of G V New Media Technologies Ltd

The assets and liabilities of the entertainment infrastructure division (exhibition) will be transferred to new entity GV Studio City Ltd and that of the web-casting division will be transferred to the new entity GV New Media Technologies Ltd. The production, distribution and tele-serial business shall remain with the parent company – GV Films Ltd.

As per the modified scheme the paid up capital of GV Films Ltd after the de-merger will be reduced to Rs 34,82,20,000 divided into 3,48,22,000 equity shares of Rs 10 each by cancellation of 31,33,98,000 Equity Shares of Rs 10 each.