Karan Johar joins board of Adlabs

Anil Ambani-owned Adlabs Films today appointed film-maker Karan Johar, the Anil Dhirubhai Ambani Enterprises (ADAE) group president Gautam Doshi and SSKI promoter Shripal Morakhia as additional directors.

According to a release issued by Adlabs to the BSE today, the new directors will hold office up to the next annual general meeting of the company, to be held in September 2006.

"Manmohan Shetty, Pooja Shetty and Berjis Desai will continue as chairman and managing director, whole time director and non-executive independent director, respectively," the release said.

Former co-promoter of Adlabs Vasanji Mamania, Zee Telefilms CEO Pradeep Guha and Centrum Finance CEO Chandir Gidwani have resigned as directors from the board with immediate effect, it added.

The board restructuring follows acquisition of the management control of Adlabs Films by ADAE. Reliance Capital, an Anil Dhirubhai Ambani Group company, had agreed to buy up to a 51 per cent stake in Adlabs Films, the fast growing entertainment and multiplex company promoted by Manmohan Shetty and Vasanji Mamania, for about Rs 360 crore.

According to the agreement, Reliance Capital bought out 31.5 per cent stake from Vasanji Mamania for about Rs 100 crore and invest Rs 260 crore in the company through a preferential share issue.

The purchase will be at a price range of Rs 175-185 per share. Shetty said the company was in the process of tying up with Ram Gopal Verma's Verma Productions to produce a total of 20 films. Shetty also stated that funding producers was a long standing practice of the company and the only difference this time round was that the volumes were bigger.

Adlabs Films in the past has funded producers like Govind Nihalani, Prakash Jha, Vipul Shah, Ramesh Sippy and many more.