Mediaone to raise Rs 90cr

Mediaone Global Entertainment Ltd, engaged in production and distribution of feature films, is in the process of raising about Rs 90 crore through preferential issue of equity shares and foreign currency deposits to fund its expansion plans.

The company is awaiting the Securities and Exchange Board of India's approval and after the preferential issue, the promoter's holding would come down to 20 per cent from 38 per cent.

The company has chalked out an expansion plan to acquire theatres in Tamil Nadu and produce and distribute more films. It is proposing to invest Rs 40 crore in film production and distribution and Rs 50 crore in acquiring theatres.

While Mediaone has finalised the acquisition of three theatres in Chengelpet district of Tamil Nadu, it expects to acquire 20 theatres in tier II and tier III cities in the state by the end of fiscal 2008, according to Suryaraj Kumar, managing director, Mediaone.

Kumar said the company would buy the theatres on an outright basis, which would be refurbished with digital projectors and air-conditioners, among others. The average spend on theatre refurbishing and digital conversion is estimated to be Rs 35-40 crore.

As part of its strategy to expand its presence in Tamil Nadu and also in the southern region initially, the company has tied up with Bhagyalakshmi Films in Karnataka for distribution of films in Karnataka.