Prime Focus , the visual effects company backed by Bollywood actor Ranbir Kapoor, saw its shares hit the 10% upper circuit limit at Rs 158.10 on the Bombay Stock Exchange (BSE) following a significant block deal. The transaction involved 47.5 lakh shares, representing a 1.53% equity stake in the company.

Stake Reduction by Marina IV L.P.

Marina IV L.P. and its four associated entities sold 7,789,590 shares of Prime Focus Limited through open market transactions. This sale resulted in a decrease of their collective stake from 21.23% to 18.71% of the company's total share capital.

The seller group includes:

• Marina IV L.P. (primary seller)
• Marina IV (Singapore) Pte. Ltd.
• Marina Horizon (Singapore) Pte. Ltd.
• Augusta Investments Zero Pte. Ltd.
• Augusta Investments I Pte. Ltd.

It's worth noting that these entities are not part of Prime Focus Limited's promoter group.

Block Deal Details

While the specific parties involved in the recent block deal were not immediately disclosed, the transaction has sparked investor interest in Prime Focus, known for its work in the visual effects industry.

Ranbir Kapoor's Investment

Prime Focus has been in the spotlight recently due to Ranbir Kapoor's reported investment of Rs 15-20 crore through a preferential share issue. The company had previously approved the issuance of over 46 crore shares, with Kapoor among the proposed allottees for approximately 12.5 lakh shares.

Company Background

Founded by Namit Malhotra in 1997, Prime Focus has established itself as a prominent player in the visual effects industry. The company's subsidiary, Double Negative, has garnered significant acclaim, winning eight Academy Awards for its work on films such as TENET and Dune.

Upcoming Projects

Adding to the company's appeal is its involvement in the production of the highly anticipated Ramayana movie, which has generated considerable buzz in the entertainment industry.

Stock Performance

Prime Focus shares have shown strong performance in recent months:

Despite a slight decline in the past month, the overall trend indicates growing investor confidence in the company's prospects.

The recent block deal, the upper circuit limit reached by Prime Focus shares, and the stake reduction by Marina IV L.P. and its associates underscore the dynamic nature of the company's ownership structure and the market's continued interest in its potential. As the visual effects industry continues to play a crucial role in filmmaking, Prime Focus appears well-positioned to capitalize on its expertise and high-profile projects.

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.