Prime Focus announced on Wednesday that the company's technology subsidiary, Prime Focus Technologies (PFT) has raised Rs 450 million through a private placement of optionally convertible debentures (OCDs) from a diverse base of high net-worth individuals.
The funds raised would be used to fuel expansion of its Cloud Technology, CLEAR in the global markets as well as for retiring debt. After 2 years, investors will also have an option of converting up to 25% of the total principal amount into equity of PFT. As part of the process, the current base equity valuation of PFT as determined by a Big Four accounting firm has been established at Rs 11 billion.
CLEAR Media ERP is a pioneering solution and market leader with the world’s biggest broadcasters and distribution networks using it for managing their revenue and time critical content operations.
Ramki Sankaranarayanan, founder and CEO, PFT, said, ''We are extremely pleased with the investor interest in PFT. Through this attractively structured instrument, we have secured growth capital while broad-basing our investor base and at the same time creating a compelling opportunity for shareholder value creation at PFT as well as the ultimate shareholders at PFL level.''
Shares of the company gained Rs 1.55, or 5.55%, to settle at Rs 29.50. The total volume of shares traded was 304,983 at the BSE (Wednesday).