MUMBAI: UTV Motion Pictures Plc, the holding company of UTV Motion Pictures (Mauritius) Limited, has debuted on the London Stock Exchange’s Alternative Investment Market (AIM) today.
The company, which will trade under the UTVM symbol, has raised $70 million gross via placing of new ordinary shares with investors in the UK, Europe and Asia at a price of $2.90. With this, the market capitalisation of UTV Motion Pictures Plc stands at $302 million.
UTVM scrip closed the day at $3.075 on AIM, thus marking up the company’s value to $320.22 million.
The proceeds of the placing will be utilised to fund the $30.2 million acquisition by UTV Mauritius of a movie portfolio from UTV Software Communications Limited and certain subsidiaries of UTV India and in the case of the movie Goal, Aim Productions Limited. Funds will also be used to finance the development and production of the movies in incubation acquired as part of the movie portfolio; and to fund the production and/or acquisition of further movie content.
The total number of new ordinary shares placed on behalf of the company are 24,137,931, the number of ordinary shares in issue following the placing are 104,137,931. The percentage of enlarged issued share capital subject to the placing 23.18 per cent. The estimated net proceeds of the placing receivable by the company stood at $65.7 million.
UTV Software Communications chairman and UTV Motion Pictures non-executive chairman Ronnie Screwvala said, “We are delighted with the response from investors who recognise that UTV’s early adoption of the Hollywood studio model will enable the company to establish a leading position in the Indian movie industry. We now have the funds to implement our strategy for rapid, profitable growth.â€Â
UTV Mauritius is involved in production and co-production of Hindi, regional, Hollywood, animation (international and Indian) movies; and distribution of movies through various networks and across several platforms.
UTV India’s movie portfolio, which comprises Hattrick, Life In A… Metro and The Blue Umbrella, has been acquired by UTV Mauritius. UTV Mauritius has also acquired the joint IPRs of Jodhaa Akbar, to be held with Ashutosh Gowariker Productions Private Limited, including copyright and the rights of exploitation, for the Hindi movie in production. The IPRs including the copyright and the rights of exploitation (other than certain distribution rights for the UK for three years) for the Hindi movie in production, Goal, which is being produced by AIM Productions Limited in the UK, have also been acquired.
UTV Mauritius has also acquired the rights in relation to a slate of 32 live-action Hindi movies at various stages of incubation. Some of these movies are to be co-produced with third parties, such as Vishal Bhardwaj Pictures Private Limited, Rakeysh Omprakash Mehra Pictures Private Limited and Widescreen Productions. UTV Mauritius has appointed UTV India as the exclusive line producer in India for the Hindi movies in incubation, except for Mumbai Meri Jaan and Fashion.
Two completed English language movies co-produced The Namesake and I Think I Love My Wife have also been acquired by UTV Mauritius.
As far as animation movies are concerned, UTV Mauritius will be embarking on its own animation IPR creation. Plans are to convert the heads of agreement with Will Smith’s Overbrook Entertainment into a comprehensive binding agreement for Overbrook to co-produce a full length animation movie for world markets.
UTV Mauritius will be acquiring rights of four Indian animation movies for world markets. These rights include directors’ agreements with Simi Nallaseth, Arnab Chaudhuri and Soumitra Ranade in relation to pre-production and scripting. UTV Mauritius is also co-producing an animation film aimed at the South Asia market.
Grant Thornton Corporate Finance is the company’s nominated adviser and Jermyn Capital Partners Plc is the broker to the company.
SIDDHARTH ROY KAPUR APPOINTED COO OF UTV MOTION PICTURES
UTV Motion Pictures will be headed by Siddharth Roy Kapur as its chief operating officer. Before taking over as the COO of the company, Kapur was UTV executive vice president marketing, distribution and syndication.
He spearheaded various marketing campaigns of the UTV Group in India and in international markets and has been instrumental in various marketing and distribution functions of the UTV Group, including movies and broadcasting.
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UTV Motion Pictures raises $70 million from AIM
