Mumbai-based KSS Ltd, formerly known as K Sera Sera Limited, has decided to sell a significant minority stake in its subsidiary K Sera Sera Miniplex Ltd through offer for sale, according to a stock market disclosure.
The firm, which is engaged in the in-house production and distribution of motion pictures in India, is planning to divest 26 per cent equity stake in the subsidiary for a total valuation of nearly Rs 200 crore (around $33.27 million), as per a board meeting on July 25. At this valuation the firm would get around Rs 52 crore from the proposed transaction.
It did not say if it has identified a buyer for the transaction. A number of firms have been looking to expand their multiplex business, which is dominated by the likes of PVR, Inox and Big Cinemas.
KSS operates around four miniplexes one each in Mumbai, Sangrur, Ramnagar and Raigad. It runs miniplexes for cinema exhibition which doubles up for distance learning through satellite transmission in non movie-viewing hours.
Founded in 1995, KSS is engaged in the business of miniplexes, digital cinema, education, edutainment, online trading, project consultancy, international film distribution, general trading and investments in gold mines.
It has produced various movies of Bollywood director cum producer Ram Gopal Varma including Sarkar besides distributing several others across languages.
The firm also has high definition cinema projection technology via satellite, under SkyCinex brand. In the past it had also diversified beyond the entertainment sector to buy a stake in an Australian gold mine company Citigold.
Early this year it had said it is acquiring Digital Cinema and Technology India Pvt Ltd (DCAT) for an undisclosed amount. This strengthens its position as one of the strongest players offering full HD e-cinema services delivered through the satellite in India and the third-largest player in e-cinema theatre network.
Founded in 2010, Mumbai-based DCAT provides e-cinema services through digital projection with the help of high-speed networks. It is led by chief executive Krishna Pal.
Another firm in the digital cinema space is UFO Moviez India, which is engaged in distribution and exhibition of films, trailers, advertisements and other audio and visual programmes to theaters using digital technology. It counts 3i and Providence Equity Partners as its PE investors.
(Edited by Joby Puthuparampil Johnson)