Standard Chartered Private Equity to invest $35 million in Prime Focus

Standard Chartered Private Equity (Mauritius) III Limited will subscribe to equity shares of Prime Focus Limited (PFL) on preferential basis for an aggregate amount of US$ 35 million at a maximum price of Rs. 53 per equity share.

In addition, the company will issue warrants to the promoter Namit Malhotra, representing a right to subscribe to equity shares, for an aggregate amount of Rs. 1,040 million on preferential basis. These warrants are convertible into equity shares at a maximum price of Rs. 53 per equity share.

PFL will convene an Extraordinary Shareholders' Meeting (EGM) on 3rd November, 2012 to seek shareholders' approval for these transactions.

An investment by Standard Chartered Private Equity (SCPE) marks an important milestone for the Company, and will go a long way in helping the Company to sustain its future growth plans. In addition, the Promoter, Mr. Namit Malhotra's investment into the Company reinforces the promoter groups continued commitment towards the business.

Speaking about the transaction, Ramki Sankaranarayanan, Managing Director and CEO, Prime Focus commented, "We are extremely delighted to have SCPE as our long term partner with this equity infusion. In conjunction, we are in the process of raising long term debt to support the redemption of the FCCB due later in the year and are in a fairly advanced stage of negotiation with various lenders"

The Prime Focus Ltd stock was trading at Rs.52.40, down by Rs.0.60 or 1.13%. The stock hit an intraday high of Rs.58.10 and low of Rs.51.25.

The total traded quantity was 1.51 lakhs compared to 2 week average of 3.19 lakhs.

Source : Equity Bulls

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