UFO Moviez India rose 3.83% to Rs 542.50 at 13:48 IST on BSE after the company said it has settled dispute with Real Image Media Technologies.
The announcement was made before trading hours today, 10 May 2016.Meanwhile, the BSE Sensex was up 25.81 points, or 0.10%, to 25,714.67 .
On BSE, so far 6,444 shares were traded in the counter, compared with an average volume of 13,462 shares in the past one quarter. The stock hit a high of Rs 547 and a low of Rs 525 so far during the day. The stock hit a record high of Rs 643 on 4 August 2015. The stock hit a record low of Rs 380.10 on 1 March 2016. The stock had outperformed the market over the past one month till 9 May 2016, rising 10.51% compared with 4.11% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 3.83% as against Sensex's 6.94% rise.
The mid-cap company has an equity capital of Rs 27.60 crore. Face value per share is Rs 10.
UFO Moviez India had received a legal notice dated 9 February 2015 from Real Image Media Technologies (RI) regarding two patents of RI used by the company and that it should obtain licence from Real Image.
UFO Moviez received legal advised that its operations do not violate any of the RI's patents and that there exist grounds for revocation (cancellation) of RI's patents. UFO Moviez had immediately thereafter initiated revocation proceedings before the Intellectual Property Appellate Board, Chennai (IPAB) for revocation (cancellation) of RI's patents, UFO Moviez said in a statement.
Subsequently in April 2015 UFO Moviez received proposals from RI for resolution of the above disputes and it was decided that the dispute would be resolved through the process of discussion on mutually acceptable terms.
Accordingly, UFO Moviez withdrew the revocation petitions filed against RI's patents and the parties commenced discussions on the terms of settlement. As a result of the negotiation, both the firms have arrived at an agreement on mutually acceptable terms on 9 May 2016, which settles all disputes between the parties. The agreement is binding and effective between the parties from 1 April 2016 till 30 September 2022. The aggregate annual expense on account of this co-existence agreement is not material, UFO Moviez said.
On a consolidated basis, net profit of UFO Moviez India rose 1.14% to Rs 16.03 crore on 16.48% rise in net sales to Rs 144.49 crore in Q3 December 2015 over Q3 December 2014.
UFO Moviez India is India's largest digital cinema distribution network and in-cinema advertising platform in terms of number of screens. UFO operates India's largest satellite-based, digital cinema distribution network using its UFO-M4 platform, as well as India's largest D-Cinema network.
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