Color Chips plans 1:1 rights issue

Color Chips India Limited announced that its board of directors, which met here on April 14, has approved of its plans for a rights issue. Color Chips is an integrated design solutions company and its activities include animation, web design to identity development.

The company has filed the relevant documents with the Securities and Exchange Board of India (Sebi) and is awaiting approval for the issue.

The company has an equity capital base of Rs 13 crore. The face value of a share is Rs 10 and the rights will be issued in the ratio of 1:1.

When contacted, the company sources said that the funds raised through the rights issue would be utilised for financing the current capital expenditure on its new plans as long-term capital needs of the company.

The animation company, which has been into services segment, is for the first time venturing into production of animation films for TV and movies as well. The company holds intellectual property rights for around 200 animation characters. The animation films will be based on these characters. It also has content in the form of cartoons, features, stories and other print media related titles.

Sources also said that the company is ramping up its headcount by adding 200 animation experts in the next three months The company has around 150 personnel involved in the development of animation characters and rendering services for other companies.

The company is looking for developers/experts in fields such as 2D and 3D animation, game development, Special FX, graphic designing and print publication services. The recruitment process will be completed in the next three months.

The company had recently signed up a major 2D animation project with BKN International AG of Germany for co-production of 'Legend of the Dragon', a 26 half-hour episode services.