Prime Focus Limited , a prominent player in the media and entertainment industry, has undergone a significant change in its shareholding structure. A2R Holdings, part of the company's promoter group, has increased its stake in Prime Focus from 48.75% to 52.87% through a preferential allotment of shares.

Key Details of the Transaction

• Acquisition Date: September 17
• Shares Acquired: 15,95,37,479 equity shares
• Allotment Price: Re. 1 per share
• Mode of Acquisition: Preferential allotment as consideration other than cash (share swap)

Impact on Shareholding Structure

The preferential allotment has led to several changes in Prime Focus Limited's shareholding pattern:

Additional Information

• The allotment included 11,51,90,562 equity shares to non-promoter allottees, contributing to the decrease in overall promoter group shareholding.
• A2R Holdings is part of the promoter group of Prime Focus Limited, with Mr. Namit Malhotra and Mr. Naresh Malhotra acting as persons in concert.
• The transaction was disclosed in compliance with Regulation 29(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Market Implications

This preferential allotment marks a significant shift in Prime Focus Limited's ownership structure, with A2R Holdings now holding a majority stake. The increase in total equity shares and the inclusion of non-promoter allottees may have implications for the company's future decision-making processes and strategic direction.

Prime Focus Limited continues to be a key player in the media and entertainment sector. Investors and market watchers will likely be keen to observe how this change in shareholding structure might influence the company's operations and market performance in the coming months.

Prime Focus , a prominent player in the media and entertainment services industry, has achieved a significant milestone in its capital raising efforts. The company has received in-principle approval from both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) for a substantial preferential issue of equity shares.

Approval Details

The approval covers the issuance of 46,26,68,572 equity shares, each with a face value of Re. 1. This massive equity infusion is targeted at both promoter and non-promoter categories, signaling a comprehensive approach to the company's capital structure enhancement.

Breakdown of the Preferential Issue

The preferential issue comprises two distinct components:

1. Share Swap: 430,124,822 equity shares at a minimum price of Rs. 120.00 per share, to be issued to promoters and non-promoters.
2. Additional Issue: 32,543,750 equity shares at a minimum price of Rs. 120.00 per share, exclusively for non-promoters.

Regulatory Compliance and Conditions

Both the BSE and NSE have laid out specific conditions for Prime Focus to adhere to:

• Strict compliance with regulatory requirements, including those set by SEBI, RBI, and MCA.
• Obtaining all necessary statutory approvals.
• Strengthening internal controls to monitor trading activities of allottees.
• Filing listing applications within the stipulated timeframes.

Timeline and Exchange Approvals

• BSE granted its approval on September 11.
• NSE followed suit with its approval on September 12.

Management's Statement

Parina Shah, Company Secretary & Compliance Officer of Prime Focus, confirmed the receipt of in-principle approvals in an official communication to the stock exchanges. The company expressed its commitment to fulfilling all regulatory requirements and conditions set forth by the exchanges.

Implications and Outlook

This substantial equity issuance, if successfully completed, could significantly bolster Prime Focus's financial position. The preferential allotment at Rs. 120.00 per share, well above the face value of Re. 1, indicates a positive valuation of the company's prospects.

Investors and market watchers will be keenly observing how Prime Focus utilizes this potential capital infusion and its impact on the company's growth trajectory in the competitive media and entertainment services sector.

As the process unfolds, Prime Focus will need to navigate carefully through the regulatory landscape, ensuring full compliance with all conditions to successfully list these new shares and leverage this capital for its strategic initiatives.