Prime Focus Technologies (PFT), a technology arm of Mumbai-based visual entertainment services company Prime Focus Ltd, has raised Rs 45 crore ($7.5 million) from a diverse base of high net-worth individuals (HNIs) through a private placement of optionally convertible debenture (OCDs).
The investors will have an option to convert up to 25 per cent of the total principal amount or around Rs 11 crore into equity of PFT after two years. The firm said this puts a base equity valuation of PFT at Rs 1,100 crore ($183 million). This means the unnamed investors may get around 1 per cent stake for part conversion of the OCDs.
The company will use the fund raised to back its expansion plans of cloud technology product, namely CLEAR in the global markets and also to pare debt.
"Through this attractively structured instrument, we have secured growth capital while broad-basing our investor base and at the same time creating a compelling opportunity for shareholder value creation at PFT as well as the ultimate shareholders at PFL level," Ramki Sankaranarayanan, founder and CEO said.
CLEAR is a web-based media asset management service to help film studios, broadcasters and advertisers manage their content and workflows more efficiently. It also manages the entire lifecycle of content from production to distribution, and offers a digital delivery platform for advertising and entertainment content, according to information available on the company's website.
PFT has grown at over 150 per cent on a year-on-year basis since inception six years ago and aims to replicate its initial success with broadcasters in the North American studio production segment, the statement said.
Recently, PFT acquired US-based DAX LLC, a provider of cloud-based production workflow and media asset management applications, for $9.1 million (Rs 56 crore) in a performance-linked transaction.
Shares of its parent Prime Focus closed the day at Rs 29.50 a unit, up 5.55 per cent on the Bombay Stock Exchange in a strong Mumbai market on Wednesday.
(Edited by Joby Puthuparampil Johnson)