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Thursday, June 5, 2008

JPM, ICICI Ventures to invest Rs 60 cr each in PVR Pictures


Excerpts from CNBC-TV18’s exclusive interview with Sanjeev Kumar Bijli:

Q: What is the exact amount of money that you will have raised with this increased shareholding?

A: We have raised Rs 120 crore. It is Rs 60 crore each from both investors - ICICI and JP Morgan.

Q: ICICI Ventures already has a shareholding in your company. What would be the new stake that they would have? What would be the shareholding?

A: They actually had come in into PVR Limited earlier. But post the IPO, they had divested most of the investment. So, in PVR Pictures, which is a subsidiary, they have come in at about 20% now.

Q: What is the key use of the Rs 120 crore?

A: Since this is coming into PVR Pictures, we are going to be looking at deploying these funds into film production and distribution. We have had a good start with Taare Zameen Par and have got another film coming up in July. So, this is purely for content.

Q: If I get you right, it has come to a subsidiary, PVR Pictures, is it?

A: That is right.

Q: Will you be looking for more support in terms of selling shares and raising money?

A: No. This is it for now. Obviously, this will see us through for a number of years. We are hoping that we will be able to deploy them and get some good films going.

Q: At this point, what is PVR’s holding in PVR Pictures?

A: 60%.

Q: That obviously would have gone down after this increase in capital from outsiders?

A: Now, it has gone down to 60% with the capital infusion.

Q: Are there any moves to raise money in the parent company, PVR as well?

A: No, not right now. Not as of now. We have had a healthy year, and with internal accruals and the IPO funds we raised earlier, we are pretty much on track right now.

Q: What is the number of shares you have issued to these two shareholders? What is the price they have paid per share?

A: I don’t have the details right now, because we have just signed it only yesterday. A lot of the paperwork is still being done. I am sure we will announce everything once that is done with.

Q: What is the dilution? How many new shares have you issued?

A: We have diluted 40%.

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