NewsCorporate ActionsVashu Bhagnani Industries Approves Rs 50 Crore Investment in UAE SubsidiaryVashu Bhagnani Industries Approves Rs 50 Crore Investment in UAE Subsidiary
Vashu Bhagnani Industries Limited plans to invest up to Rs 50 crores in its UAE subsidiary, Modern Productions FZ LLC. The investment, comprising Rs 10 crores in loans and Rs 40 crores in share subscription, aims to boost working capital and support expansion into real estate ventures. The investment is scheduled for completion by fiscal year 2025-26. Modern Productions FZ LLC, operating in film and TV production, has shown growth with turnover increasing from Rs 3.56 crores in 2023-24 to Rs 6.88 crores in 2024-25. The transaction, approved by the Audit Committee, qualifies as a related party transaction under SEBI regulations.
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Vashu Bhagnani Industries Limited , formerly known as Pooja Entertainment and Films Limited, has announced a significant investment in its wholly-owned UAE subsidiary, Modern Productions FZ LLC. The Board of Directors has approved an additional investment of up to Rs 50 crores, aimed at enhancing the subsidiary's working capital and supporting its expansion into new business ventures.
Investment Details
The investment will be structured as follows:
- Rs 10 crores in loans
- Rs 40 crores in share subscription
The company plans to complete this investment within the fiscal year 2025-26, demonstrating a commitment to the growth and diversification of its UAE operations.
About Modern Productions FZ LLC
Modern Productions FZ LLC, incorporated in June 2018, operates in the production and distribution of motion pictures, movies, videos, and television programmes. The subsidiary has shown significant growth over the past few years:
| Fiscal Year | Turnover (in Rs Crores) |
|---|---|
| 2024-25 | 6.88 |
| 2023-24 | 3.56 |
| 2022-23 | 6.21 |
Strategic Expansion
The additional investment is expected to serve two primary purposes:
- Enhance working capital requirements
- Support entry into new real estate business ventures
This move suggests that Vashu Bhagnani Industries is looking to diversify its portfolio beyond the entertainment sector, potentially tapping into the real estate market in the UAE.
Corporate Governance and Compliance
The transaction has been conducted with due diligence and adherence to regulatory requirements:
- Prior approval was obtained from the Audit Committee
- The investment qualifies as a related party transaction under Regulation 23 of the SEBI (LODR) Regulations
- Mrs. Puja Vashu Bhagnani, Managing Director, has been authorized to implement the resolution
Market Impact
This strategic investment underscores Vashu Bhagnani Industries' commitment to expanding its international footprint and diversifying its business interests. The move could potentially strengthen the company's position in the entertainment industry while opening up new revenue streams in the real estate sector.
Investors and market watchers will likely keep a close eye on how this investment impacts the company's financial performance and growth trajectory in the coming years.
Historical Stock Returns for Vashu Bhagnani Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.97% | +5.79% | -18.36% | +33.56% | -38.89% | +262.71% |
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