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Prime Focus to raise Rs 5,552 crore via preferential issue, acquire additional stake in DNEG
By Aditya Bhagchandani Published on July 3, 2025, 22:38 IST
Prime Focus Limited announced on July 3, 2025, that its Board of Directors has approved raising up to ₹5,552 crore through a preferential allotment of equity shares and acquiring a larger stake in its step-down subsidiary, DNEG S.a.r.l., Luxembourg.
The company plans to issue up to 46.27 crore fully paid-up equity shares at ₹120 per share, partly as cash consideration and partly through a share swap. Specifically, approximately 43.01 crore shares will be issued in exchange for acquiring certain shares of DNEG, while about 3.25 crore shares will be issued to raise fresh capital of around ₹391 crore.
After the transaction, Prime Focus's direct and indirect shareholding in DNEG will increase to about 88.28% from the current level. DNEG, engaged in visual effects, animation, and creative technologies for film, TV, and immersive content, reported revenues of USD 425.7 million for FY25.
The board also approved: Alteration of the company's articles of association to grant special rights to an investor.
A material related-party transaction between its subsidiary PF World Limited and promoter-group entity A2R Holdings.
Enhancing investment, loan, and guarantee limits under Section 186 of the Companies Act.
Convening an extraordinary general meeting on July 26, 2025, to seek shareholder approvals.
Sixteen investors—including A2R Holdings, Novator Capital, Ranbir Kapoor, and others—will participate in the preferential allotment. A2R Holdings, the promoter group entity, will see its stake increase to about 53.46% post-issue.
This move further consolidates Prime Focus's control over DNEG and strengthens its financial position to fund growth initiatives in the visual effects and creative industries globally.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
