Mumbai:Following the industry trend, two entertainment companies Pyramid Saimira Theatre Ltd and BAG Films Ltd announced moves towards expansion.
Pyramid Saimira Theatre, which became public in December 2006, plans to raise $100 million through foreign currency convertible bonds for financing its content-fund creation, mall-development projects and a Malaysian joint venture, a top official said.
BAG Films has told BSE that the company would hold a board meeting to discuss an increase in authorized capital by Rs5 crore to Rs25 crore.
An analyst from a brokerage firm said the industry has been trying to grow revenues by expanding capacities. He said investments in multiplexes were risky as historically, multiplexes do not come up on time.
Pyramid Saimira plans to develop 200 malls in India over four years through SPVs in. The company’s issue would be listed on the Singapore Stock Exchange by the first week of May, P.S. Saminathan, managing director, Pyramid Saimira, said.
Of the funds raised, $25 million would be used to sponsor the content fund that would finance movie productions or take a stake in Indian production houses. “It (Pyramid) would become a supply chain for the company.”
Reuters contributed to this story