Prime Focus Limited , a leading media and entertainment services company, has significantly strengthened its position in the visual effects and animation industry through a strategic share allotment and acquisition. The company has successfully completed a preferential allotment of 18.79 crore equity shares, raising INR 2,255.29 crore and increasing its stake in its step-down subsidiary, DNEG.

Key Highlights of the Transaction

• Share Allotment: Prime Focus allotted 18,79,40,531 equity shares at INR 120.00 per share.
• Capital Raised: The allotment raised a total of INR 2,255.29 crore.
• Increased Stake in DNEG: Prime Focus's total shareholding in DNEG has increased to 88.28%.
• Share Capital Expansion: The company's paid-up share capital increased from INR 58.76 crore to INR 77.55 crore.

Allotment Details

The allotment was made to seven entities, including both promoter and non-promoter categories:

DNEG Acquisition

As part of this transaction, Prime Focus directly acquired a 12.53% stake in DNEG. Additionally, its subsidiary PF World Limited acquired a 1.03% stake from A2R Holdings, a promoter group entity. These acquisitions have collectively increased Prime Focus's total shareholding in DNEG to 88.28%.

About DNEG

DNEG, a Luxembourg-based company, is a key player in the visual effects, animation, and creative technologies industry for film, TV, and immersive content. The company reported a turnover of USD 425.70 million and total assets of USD 935.90 million in its most recent financial report.

Regulatory Compliance

The share allotment and related transactions were conducted in compliance with the Securities and Exchange Board of India (SEBI) regulations and received necessary shareholder and regulatory approvals. The allotment was made in accordance with the terms mentioned in the notice of the Extraordinary General Meeting (EOGM).

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.