Prime Focus rose 4.65% to Rs 29.25 at 13:08 IST on BSE after the company said its technology subsidiary has raised Rs 45 crore through a private placement of optionally convertible debentures.
The announcement was made during trading hours today, 9 April 2014.
Meanwhile, the S&P BSE Sensex was up 75.94 points or 0.34% at 22,419.39.
On BSE, so far 1.37 lakh shares were traded in the counter as against average daily volume of 1.51 lakh shares in the past one quarter.
The stock hit a high of Rs 29.30 and a low of Rs 27.85 so far during the day. The stock had hit a 52-week high of Rs 43.05 on 9 April 2013. The stock had hit a 52-week low of Rs 23.75 on 5 December 2013.
The stock had underperformed the market over the past one month till 7 April 2014, advancing 0.18% compared with the Sensex's 1.93% rise. The scrip had also underperformed the market in past one quarter, declining 13.87% as against Sensex's 7.97% rise.
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The small-cap company has equity capital of Rs 18.54 crore. Face value per share is Re 1.
Prime Focus said that its technology subsidiary Prime Focus Technologies (PFT) has raised Rs 45 crore through a private placement of optionally convertible debentures 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, the company said. As part of the process, the current base equity valuation of PFT as determined by a Big Four accounting firm has been established at approximately Rs.1100 crore, Prime Focus said in a statement.
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".
PFT which has grown at over 150% YoY since inception six years ago, aims to replicate its initial success with broadcasters, in the North American studio production segment, Prime Focus said in a statement. In line with this strategy, PFT recently acquired US-based DAX, a leading provider of cloud-based production workflow and media asset management applications to the entertainment industry in North America.
Prime Focus Technologies is the technology subsidiary of Prime Focus, the global leader in media and entertainment industry services.
Prime Focus reported consolidated net profit of Rs 10.33 crore in Q3 December 2013 as compared to a net loss of Rs 63.27 crore in Q3 December 2012. Net sales rose 18.3% to Rs 213.68 crore in Q3 December 2013 over Q3 December 2012.
Prime Focus is a global visual entertainment services company that provides creative and technical services to the film, broadcast, and advertising market.
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