Prime Focus hit an upper circuit of 20% at Rs 49.35 after the company said its UK subsidiary filed for an initial public offering (IPO) with the UK Financial Conduct Authority.
The company said that its London-based subsidiary, DNEG, announced that it intends to publish a registration document that has been submitted for approval to the UK Financial Conduct Authority (FCA) and is considering proceeding with an initial public offering of its ordinary shares.
DNEG is a leading digital visual effects, animation and stereo conversion companies for feature film and television.
Pending a decision to proceed with its intention to IPO, DNEG would apply for admission of its shares to the premium listing segment of the official list of the FCA and to trading on the London Stock Exchange's main market for listed securities.
The offer would be comprised of new shares to be issued by DNEG (raising gross proceeds of 150 million) and an offer of existing shares to be sold by certain existing shareholders. it intends to use the net proceeds from the issue of the new shares in order to finance further growth plans and reduce net debt.
Immediately following admission, DNRG intends to have a free float of at least 25% of the company's issued share capital and an over-allotment option of up to 15% of the total offer size would be made available by an existing shareholder. DNEG expects that it would be eligible for inclusion in the FTSE UK indices post admission.
Meanwhile, the S&P BSE Sensex was up 364 points or 0.95% to 38578.86.
On the BSE, 21,203 shares were traded in the counter so far compared with average daily volumes of 10,360 shares in the past two weeks. The stock hit a high of Rs 49.35 and a low of Rs 42.1 so far during the day.
The stock hit a 52-week high of Rs 74.7 on 28 Nov 2018. The stock hit a 52-week low of Rs 31.75 on 23 Aug 2019.
On a consolidated basis, the media services company reported a net loss of Rs 33.79 crore in Q1 June 2019 over a net loss of Rs 6.12 crore in Q1 June 2018. Net sales rose 8.9% to Rs 657.62 crore in Q1 June 2019 over Q1 June 2018.
Prime Focus (PFL) is an independent integrated media services company. The firm provides end-to-end creative services, technology products & services, production services (equipment rental) and post-production services to the media & entertainment industry.
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