wordpress blog stats
Connect with us

Hi, what are you looking for?

Pyramid Saimira To Raise $100M; Detaches Production, Distribution Wings

pyramid-saimiraBSE-listed Indian theatre chain owner Pyramid Saimira (PSTL)  informed the BSE that it will raise funds to the tune of $100 million via an international issue of securities including Foreign Currency Convertible Bonds (FCCBs), Global Depositary Receipts (GDRs), American Depositary Receipts (ADRs), subject to approval. PSTL recently approved qualified institutional placement measures to issue 1 crore equity shares and planned to offer 1 crore warrants to its promoters.

The financially distressed company is in dire need for funds after a share market scam led to a decline of its valuation, operational losses followed and box office failures delivered another hit to the company, it had to shut down 497 of its 745 screens. Its accounts were also paralysed by the Income Tax department, to which it owed Rs. 26.57 crores, due on March 31, 2009. PSTL posted losses of Rs. 1.37 billion in FY 2009.

The funds could be used to get its production and distribution of movies back on track. It needs to pay 300 employees’ salaries. Besides these, the group runs animation/gaming, hospitality, food and beverage and cine advertising companies. The company has not yet sold its gaming subsidiary Aurona Technologies, nor its US and Malaysia businesses – the non-core sectors the company planned to exit. The US subsidiary owns 21 screens, two radio stations, a banquet hall and a magazine, DesiPages and was suffering losses. The Malaysian one was profitable, and operates in the movie distribution sector.

De-merging Production & Distribution

The board of directors at the company have also approved the demerger of two divisions into subsidiaries – Pyramid Saimira Content Distribution and Pyramid Saimira Production International. This was the first step in the company’s plan to list the two subsidiaries. CNBC-TV18 reported the company plans to divest 40% stake to a strategic partner it has roped in as co-promoter.

Will this move help the company regain its financial balance or will it boomerang? The board hopes the subsidiaries will be freed of the negative publicity that was choking the company, and listing them will help the company open up avenues to raise more funds.

Related

Q4 09: Pyramid Saimira Posts YoY Losses Of Rs. 1.37B; Animation & Gaming Writeoff; Four Screens Shut

Pyramid Saimira Promoter PS Saminathan, 230 Barred From Trading

Pyramid Saimira Quits Gaming; To Sell Subsidiary Aurona; Focus On Core Biz

Pyramid Saimira Bites Back At I-T Dept; 300 Employees Not Paid Salaries; Threat of Solvency?

Pyramid Saimira Selling Stake In Subsidiaries; Cutting Op Losses Further

You May Also Like

News

The digital business of Raghav Bahl and Ritu Kapur’s The Quint have been acquired by Gaurav Mercantiles Limited, a company that also has Kapur...

News

The rush to put together an independent body for online content regulation is turning out to be quite a challenge for the Internet and...

News

by Nikhil Pahwa and Aroon Deep “This is not an IAMAI code, and it should not be represented in that manner,” a stakeholder apparently...

News

The Internet Freedom Foundation*, a digital rights non-profit based in India, has written to Justice AP Shah, Chairman of the IAMAI’s controversial Digital Content...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to Daily Newsletter

    © 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ