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BAG Films promoters to consolidate holding, issue preferential warrants

MUMBAI: With a view to tightening her grip on the company, BAG Films & Media Ltd founder-promoter Anurradha Prasad has decided to issue preferential warrants.

Based on the preferential issue, the promoters/non-promoters will subscribe to 8,00,00,000 warrants which will convert into equal number of equity shares of Rs 2.00 each at a conversion price of 3.40 per share.

Following the issue, the promoter and promoter group company shareholding in BAG Films would increase to 43.04 per cent from the current level of 35.07 per cent. The companies would consolidate their holding to 25.30 per cent from the existing 18.40 per cent post conversion of preferential warrant.

After the conversion, Skyline Tele Media Services and BAG Live Entertain would control 9.59 per cent each of BAG Films paid-up equity capital. Oscar Softwear and Red Star Infotech will corner 4.40 per cent and Canon Media 4.00 per cent of the company’s total shareholding.

BAG Films will generate cash of Rs 27.2 crore (Rs 272 million) through the proposed issue.

Two promoter group companies and three non-promoter group companies were allotted warrants under preferential basis. Skyline Tele Media Services and BAG Live Entertainment, both promoter group companies, will subscribe to 2,40,00,000 warrants each.

On the other hand, non-promoter companies, namely Oscar Softwear and Red Star Infotech, would subscribe to 1,10,00,000 warrants each while Canon Media will subscribe to 1,00,00,000 warrants.

Necessary approval to that effect has been already obtained during the recently concluded annual general meeting (AGM) of the company.

During the AGM held in Delhi on 25 June 2014, shareholders have given their nod to increase authorised share capital of the company from Rs 40 crore (Rs 400 million) to Rs 55 crore (Rs 550 million). These comprise 27,50,00,000 equity shares of Rs 2.00 each.

As a participant in the preferential issue, the promoters and non-promoters will have to pay 25 per cent of the conversion price towards warrant application money.

On the domestic bourses, the BAG Films counter has been on a steady upward move since April 2014. The company’s share price had increased from Rs 2.42 per share on 1 April to the current price of Rs 4.53 each, showing a smart increase of 87 per cent. The price rise is accompanied by proportionate increase in volume as well. On Thursday, the company clocked a volume of 2.99 lakh equity shares as against a two-week average volume of 74,000 equity shares.

BAG Films operates Hindi news channel News 24, a Bollywood entertainment channel called E 24, a devotional channel Darshan 24, and 10 FM radio stations operated under the brand name Dhamaal24 (Skyline Radio Network Ltd), as well as Studio 24.