Pyramid to raise Rs 1,600 cr abroad

Funds will be used to pursue global expansion.

Chennai-based entertainment major Pyramid Saimira Theatre Ltd (PSTL) will raise about $400 million (Rs 1,600 crore) from the global market by March this year, a top company executive said today.

The funds raised will be used to consolidate the company's international businesses and pursue plans for global acquisitions and expansion.

"We are exploring various options like foreign currency convertible bonds (FCCBs), global depository receipts (GDRs) and American Depository Receipts (ADRs) to raise funds," said P S Swaminathan, managing director.

"We might also look at issuing warrants to promoters to raise additional funds, if required."

Pyramid is looking at a March deadline to raise the funds, Swaminathan said. It has already appointed international advisors for this, he said, but did not give the names of the merchant bankers.

Swaminathan said the company would decide on the vehicles for the fund-raising on the basis of the recommendation of the advisors. "It could be one mode or a combination, but we are yet to take a decision," he said.

Swaminathan said the company had shortlisted a couple of countries in case it took the GDR route. But he would not say any more as a final decision was yet to be taken.

"We are yet to decide on the country in case of a GDR, but we have short-listed the names of a couple of countries for the listing. This will also be revealed only after the names are finalised," he said.

Pyramid will convene an EGM to get shareholder approval for the fund-raising programme.

The company recently acquired a 51 per cent stake in Mumbai-based Dimples Cine Advertising & Dimples Cine Activations and prior to that it acquired Texas-based FunAsiA through its subsidiary, Pyramid Saimira Entertainment America.

Pyramid Saimira is a large entertainment group that is into film production, developing content for TV and movie exhibition.