Chennai-based entertainment company Pyramid Saimira Theatre Limited (PSTL) has moved the Securities Appellate Tribunal (SAT) against market regulator Securities and Exchange Board of India (Sebi)’s order, which had banned the company in November 2009 from trading in the Indian securities market for seven years following irregularities in its initial pubic offering (IPO).
Confirming this development, PSTL chairman P Saminathan said the company was expecting the judgment by the end of this month. “We have also asked SAT to allow our production company Pyramid Saimira Productions International Limited (PSPIL) to be listed on the exchanges next month.”
The regulator had restrained PSTL from dealing in securities in any manner, whatsoever, or accessing the securities market, directly or indirectly. Sebi had stated that an investigation into the allotment of shares, reserved for the employees by PSTL in its December 2006 IPO, revealed that the company had allotted 98.5 per cent of shares under the employee category to 7 individuals who were not its employees.
These seven persons donned the cloak of ‘employees’ on the eve of the public issue for 4 to 6 months, applied for shares in the employee category and received the allotment, sold the shares soon after listing and made an unlawful gain of Rs 2.31 crore, according to the Sebi’s order.
While declining the order, Saminthan said Sebi itself had said they have not established the sharing of spoil and accepted consents from the employees.
Meanwhile, PSTL has also asked SAT to allow PSPIL to be listed as a separate entity in the Indian market. In October last year, the company had diluted 40 per cent stake in PSPIL to Kolkata-based RDB Group and was planning to dilute similar percentage of stakes in all the companies in the next six months.
Saminathan said that it had been decided to take PSPIL to public by February next year. “We have already appointed PricewaterhouseCoopers to do the valuation,” he said, adding that PSPIL had set a turnover target of Rs 200 crore for the current financial year.
“PSPIL is planning to raise $100 million (approximately Rs 460 crore) to fund its upcoming film and television serial projects. It intends to invest Rs 120 crore to produce 17 films during this financial year, and Rs 198 crore to make 28 films in 2010-11,” Saminathan said.
