Mumbai-based visual entertainment services firm Prime Focus has raised $16 million via a qualified institutional placement (QIP). The issue, which was priced at Rs 68.58 per share, saw participation from leading Foreign Institutional Investors (FIIs).
The pricing of the issue was fairly attractive as compared to the current trading price of Prime Focus. The shares of the company closed at Rs 77.15 today, up by 2.59%. The issue was managed by Centrum Capital and Intensive Fiscal.
Prime Focus has also followed an aggressive inorganic growth strategy by buying and turning around companies in US and UK. Some of its major deals include North America-based Post Logic Studios and Frantic Films VFX in November 2007 and UK-based VTR in 2006.
It currently operates in 4 countries through 15 facilities spread across 10 cities which include Vancouver and Winnipeg in Canada, Los Angeles and New York in USA, London in the UK, Mumbai, Chennai, Hyderabad, Bangalore and Goa in India. The company reported nets sales
of Rs 453 crore and a net profit of Rs 39 crore in FY10.
Existing investors of Prime Focus include Alchemy India Long term Fund and billionaire investor Rakesh Jhunjhunwala.
“The low cost model of Prime Focus will help the company establish its global footprint. Because of significant cost arbitrage we expect the company to get a couple of big ticket sized orders in the coming months,” says Gaurav Bhandari, senior VP, Centrum Capital Ltd.