A producer and distributor of Indian films has raised tens of millions of pounds following an IPO on AIM.
A producer and distributor of Indian films has raised tens of millions of pounds following an IPO on AIM.
UTV Motion Picture, which also plans to co-produce Hollywood films, secured £32.6 million (US$65.7 million) following the move.
The company’s new ordinary shares were bought by investors in the UK, Europe and Asia for some 144p each. The placing has valued the business at £150 million (US$302 million).
UTV’s non-executive chairman, Ronnie Screwvala, said: “We are delighted with the response from investors who recognise that UTV’s early adoption of the Hollywood studio model will enable the company to establish a leading position in the Indian movie industry. We now have the funds to implement our strategy for rapid, profitable growth.”
The proceeds will be used to finance the £15 million acquisition of a film portfolio from UTV Software Communications and certain subsidiaries of UTV India. It will also be used to develop the assets in that portfolio as well as to buy further movie content.
The directors chose an admission on AIM to raise the company’s profile and that of its UTV Mauritius subsidiary.
The company’s nominated adviser was Grant Thornton with Jermyn Capital Partners acting as its broker.
UTV’s English law adviser was Sidley Austin, led by Struan Oliver, a partner in the firm’s London Corporate & Securities Group.
Sidley Austin’s team included Tom Lindup with Brett Rowland advising on the intellectual property matters of the deal. Sam Gandhi, a partner in its New York office, handled the US-related issues of the transaction.
Oliver said the firm was introduced to UTV by AZB & Partners, which regularly works with its New York office.
“The project was challenging in that it required the separation out of a part of UTV’s business and the establishment of a new infrastructure and corporate governance regime for it, particularly in relation to the ongoing relationship with UTV,” he added.
Grant Thornton and Jermyn Capital were advised by law firm Fladgate Fielder, led by partner David Robinson and head of the firm’s India team Sunil Sheth.
Robinson said he is very excited about UTV’s growth prospects on AIM. “It will allow high quality international investors to reap the benefits of the structural changes and growth opportunities being thrown up by the Indian film industry.”
UTV is a producer of Indian and animation films that it also distributes around the world. It also plans to co-produce Hollywood movies. It is chaired by media entrepreneur Ronnie Screwvala.
