Prime Focus Limited and its promoter Namit Malhotra have withdrawn their lawsuit against Reliance Alpha Services Private Limited, Reliance Mediaworks Limited, and Reliance Land Private Limited after the parties reached an amicable settlement. The Bombay High Court dismissed Commercial Suit No. 104 of 2025 as withdrawn on August 4, 2026, resolving a legal dispute that had persisted since July 2023. The settlement concludes proceedings involving a loan agreement dated February 25, 2019, and a business transfer agreement dated November 19, 2014.

The company disclosed the withdrawal to the National Stock Exchange of India Limited and BSE Limited on August 5, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The original suit was filed on July 25, 2023, by Prime Focus Limited and Namit Malhotra against the three Reliance entities, citing issues related to the aforementioned loan and business transfer agreements.

Case Timeline and Resolution

The legal matter was listed before the Hon'ble Bombay High Court on August 4, 2026. During the hearing, the plaintiffs apprised the court that the underlying disputes had been resolved amicably between all parties involved. Consequently, the court permitted the plaintiffs to withdraw the suit and formally dismissed it as withdrawn. This procedural conclusion removes the outstanding litigation from the company's pending legal cases.

Key Details of the Dispute

The withdrawn suit centered on two primary agreements that formed the basis of the commercial dispute:

The defendants in the suit were Reliance Alpha Services Private Limited, Reliance Mediaworks Limited, and Reliance Land Private Limited. The plaintiffs included Prime Focus Limited and promoter Namit Malhotra. The resolution indicates that no further judicial intervention was required to settle the terms between the entities.

Implications of the Settlement

The withdrawal of this suit eliminates a long-standing legal contingency for Prime Focus Limited. Litigation involving promoters and significant corporate agreements can carry reputational and financial risks; the amicable settlement suggests a negotiated outcome rather than an adversarial court judgment. By resolving the dispute linked to the 2014 business transfer and 2019 loan agreements, the company clears its balance sheet of potential liabilities associated with this specific commercial conflict. The absence of disclosed monetary penalties or damages in the exchange filing implies the settlement terms were mutually agreed upon without public disclosure of financial transfers.

Prime Focus Limited’s indirect subsidiary, Double Negative Films Limited (DNFL), has acquired a 48.45% equity stake in Spanish animation studio Ánima Kitchent Canarias, S.L. for ₹13,70,38,328. The strategic acquisition, completed on June 26, 2026, aims to enhance prime focus 's access to Spanish animation production capabilities and markets. The transaction involves a partnership with Sociedad Española para la Transformación Tecnológica (SETT), a Spanish Government fund that has committed an overall investment of Euro 24.9 million in the target entity under a private-public partnership model.

Ánima Kitchent Canarias, S.L. operates in the motion picture and video production sector and was founded in 2014. The entity is incorporated in Las Palmas de Gran Canaria, Spain, and holds a registration number (NIF) B76259498. The acquisition is not a related party transaction, and DNFL paid the entire consideration in cash. Required approvals from relevant authorities will be obtained as applicable.

The target studio is known for producing, creating, and distributing 2D and 3D animated content. Its prominent entertainment brands include Cuquín, Lea & Pop, Titto Lizzardo, Tippi T-Rex, and PINY Institute of New York. The acquisition aligns with the objective of leveraging the Spanish animation market and the established portfolio of the acquired entity.

Financial metrics for Ánima Kitchent Canarias, S.L. indicate a turnover of ₹92 crore and a profit after tax (PAT) of ₹11 crore. The net worth of the entity stands at ₹68 crore. The studio has demonstrated consistent growth in turnover over the past three years, driven by its production capabilities and market presence.

Financial Performance of Ánima Kitchent Canarias, S.L.

Key Acquisition Details