Prime Focus jumped 9.09% to Rs 40.80 after the company said its UK-based subsidiary, DNEG plc, plans to raise funds upto $375 million through senior secured notes.
DNEG plc announced on 28 September 2020 that it intends to commence a private offering of $375 million in aggregate principal amount of senior secured notes due 2025. It intends to use the net proceeds of the offering to repay amounts outstanding under its existing term loan facility, its existing revolving loan facility and its Indian financing facilities; to extend a loan to its parent group of companies; to pay related transaction fees and expense; and for general corporate purposes. There can be no assurance that the private offering of Notes will be completed, the company said.DNEG is a leading independent provider of computer-generated visual special effects (VFX) services. It specializes in photoreal image generation, two dimension to three dimension content conversion and animation services, for visual content used in film, television, over-the-top , augmented reality and virtual reality, and location-based and experiential entertainment. It has operations in the United Kingdom, Canada, India and the United States.
Prime Focus offers motion picture post production and visual effects services. The company offers visual effects, digital film lab, telecine, editing, and motion control to high-definition production services.
On a consolidated basis, the company reported a net profit of Rs 4.34 crore in Q1 FY21 as compared to a net loss of Rs 33.79 crore in Q1 FY20. Net sales during the quarter declined 9.2% YoY to Rs 596.92 crore.
In the past six months, the stock has added 50.55% while the benchmark S&P BSE Sensex rose 27.45% during the same period.
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