MUMBAI: Shree Ashtavinayak Cine Vision Ltd (SAVCL) plans to invest Rs 5 billion to fund its expansion plans that include overseas distribution, acquisition of satellite rights, entering new geographies for content buying and making small budget movies (Rs 50-150 million).
The company also plans to raise Rs 3 billion through an initial public offering (IPO) of one of its newly-formed subsidiaries, Shree Ashtavinayak Lights Camera Action, in the next fiscal. The proceeds of the issue will be used for the expansion of the subsidiary into new geographies for content buying, acquiring satellite rights and scaling-up annual production of movies from the present three to 10.
Shree Ashtavinayak plans to either build a new studio in and around Mumbai or acquire one depending on the feasibilty report.
However, the distribution of films, both overseas and domestic, will be done by the parent company SAVCL.
The company said in a filing to BSE that it will produce eight movies next year at an estimated project cost of Rs 5 billion. It also said that the shareholders have approved a bonus of four new shares against one share held in the company.
