NRI group offers Rs 40 cr for 15% in ABCL

NRI group may have quoted Rs 35/ share.

A group of non-resident Indians (NRI) has evinced interest in picking up about 15 per cent in Amitabh Bachchan Corporation Ltd (ABCL) for nearly Rs 40 crore.

The NRI group is believed to have quoted around Rs 35 per share. If the deal goes through, it will put the valuation of the company at Rs 266 crore ahead of its proposed initial public offer (IPO).

"ABCL is in talks with a group of NRIs for selling stake through private placement of shares. This is part of the company's target to raise $25 million (approximately Rs 112 crore) through private placements," sources close to the development told Business Standard.

The investment will help ABCL make deeper forays into film production and distribution. It plans to set up a media study school as well. ABCL executives could not be contacted for comments. Faxes sent to Amitabh Bachchan did not elicit any response.

The company has appointed a city-based investment bank, KJMC, for the IPO.

The size of the IPO had not been decided, but sources said it could be in the region of Rs 200 crore. HFCL has a 28.5 per cent stake in the company, while the balance is with the Bachchan family.

Bachchan had started ABCL in 1995 as a film-making, distribution and event management company.