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Balaji Telefilms to raise Rs 150 cr via preferential issue for OTT venture

MUMBAI: Balaji Telefilms, India’s leading production house, is getting global investors to support its proposed over-the-top (OTT) venture.

The company is in the process of raising Rs 150 crore (Rs 1.5 billion) through allotment of shares on preferential basis to Atyant Capital India Fund – I, Vanderbilt University, GH , GHI LTP Ltd, GHI HSP Ltd and GHI ERP Ltd.

The new capital will be used to launch and grow ALT Digital Media Entertainment Ltd, the group’s foray into the B2C digital content business segment. Balaji Telefilms has identified the OTT business as its next growth driver.

Balaji said its board has considered and approved a preferential issue of 1,07,20,000 equity shares at Rs 140 each, aggregating to Rs 150 crore.

The proposed issue will result in a dilution of 14.1% of the equity share capital of the company. Post issue, the promoter group holding in the company will be 40.6%.

The issue price represents a 26% premium over the average of the weekly high and low of the volume weighted average share price of the company during the past 26-week period.

ALT Digital Media will operate as subscription video on demand (SVOD)-based OTT platform targeted towards urban Indians and Indian diaspora.

Leveraging Balaji’s creative abilities in both television and film content, ALT Digital Media will aim to create differentiated, original digital content for the entire connected ecosystem spanning mobile devices, web, smart TVs and game stations.
The preferential issue is subject to necessary approvals. The company’s EGM will be held on 5 March.

Axis Capital Ltd mediated the transaction.

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