Prime Focus Limited (PFL), a prominent player in the media and entertainment services industry, has provided important clarifications regarding its proposed preferential issue of equity shares. The company's recent disclosures aim to address queries raised by the National Stock Exchange of India (NSE) and BSE Limited (BSE) during the in-principle approval process for the preferential issue.

Shareholder Approval and Share Issuance

PFL confirmed that while shareholder approval was obtained for issuing up to 46,26,69,444 equity shares, the actual number to be issued is 46,26,68,572 shares. This figure falls within the approved limit, ensuring compliance with the shareholders' mandate. The company emphasized that this information has been accurately reflected in the NEAPS portal.

Correction in Valuation Report

Prime Focus Limited addressed an error in the valuation report. The company disclosed that the price per share of the target company under the asset approach was incorrectly mentioned as ₹338.55 instead of the accurate figure of ₹329.31 per share.

Impact on Fair Value and Swap Ratio

Despite the correction in the valuation report, PFL assured stakeholders that this amendment does not affect the overall valuation or the proposed share issuance. The company clarified:

• The weightage for the asset approach in the valuation is nil.
• The correction does not impact the fair value of the target company.
• The swap ratio and the number of equity shares to be issued remain unchanged.

Regulatory Compliance and Transparency

These clarifications were made following discussions with the stock exchanges NSE and BSE regarding the company's applications for in-principle approval for the preferential issue. The move demonstrates Prime Focus Limited's commitment to regulatory compliance and transparency in its corporate actions.

Company's Official Statement

Parina Shah, Company Secretary & Compliance Officer of Prime Focus Limited, stated:

"The approval of shareholders was taken for issuance of maximum number of equity shares (that is, upto 46,26,69,444), however, the number of equity shares which are to be actually issued are 46,26,68,572 (that is, within the overall limit approved) and the same is also provided in the NEAPS portal."

The statement further emphasized that the correction in the valuation report "does not change the swap ratio and / or the equity shares to be issued as provided under the Corrigendum."

As Prime Focus Limited moves forward with its preferential issue, these clarifications serve to ensure that all stakeholders have accurate and up-to-date information regarding the company's capital raising initiatives.

Prime Focus Limited , a leading visual effects and post-production company, saw its shares surge to the 10% upper circuit following the announcement of its Q1 financial results. The company reported a significant turnaround in its performance, swinging from a loss to a substantial profit.

Financial Highlights

• Net profit for Q1 stood at Rs 110.47 crore, compared to a net loss of Rs 158.07 crore in the same quarter last year.
• Revenue from operations increased by 22.8% year-on-year to Rs 976.82 crore.
• The company posted a quarterly profit versus a loss of Rs 251.62 crore in the previous quarter.

Consolidated Financial Performance

The consolidated financial results for Q1 revealed:

Market Performance and Investor Interest

Prime Focus shares have shown remarkable momentum, rallying 63.2% over the last three months. The stock's performance has been further bolstered by recent news of Bollywood actor Ranbir Kapoor's investment in the company. Kapoor reportedly invested around Rs 15 crore by acquiring 12.5 lakh shares at Rs 120 each through a preferential equity issuance.

Upcoming Projects and Industry Recognition

Prime Focus is currently involved in the post-production of the highly anticipated film 'Ramayana', starring Ranbir Kapoor. The movie is scheduled for release in two parts during Diwali 2026 and 2027, adding to the company's high-profile project portfolio.

The company's subsidiary, Double Negative (DNEG), a visual effects studio, has worked on numerous Hollywood films and has earned eight Academy Awards, underlining the company's expertise and recognition in the global film industry.

Corporate Developments

In a recent board meeting, Prime Focus Limited made several key decisions:

1. Approval of unaudited financial results for Q1.
2. Appointment of M/s. Shridhar & Associates as internal auditors.
3. Re-appointment of Mr. Naresh Mahendranath Malhotra as Chairman and Whole-Time Director for three years, effective May 1, 2026, subject to shareholder approval.
4. Consideration of a request to reclassify a shareholder from 'promoter group' to 'public' category.

Outlook

With its strong financial performance, high-profile projects in the pipeline, and strategic corporate moves, Prime Focus Limited appears well-positioned for continued growth in the visual effects and post-production industry. The company's ability to attract investments from notable figures in the entertainment industry further underscores its potential and market standing.

Investors and industry watchers will likely keep a close eye on Prime Focus's performance in the coming quarters, especially as it gears up for the release of major projects like 'Ramayana'.