| MUMBAI:
B.A.G Films is diluting 12.55 per cent on an expanded equity to Kolkata-based
High Growth Distributors (P) Ltd. for Rs 261 million. The production house will
be making a preferential allotment of 13.07 million shares at a price of Rs 20
per share. "We have expansion plans and the funds will be utilised for this,"
says B.A.G Films managing director Anuradha Prasad.
Earlier India Bulls promoter
Sameer Gehlaut acquired 25 per cent stake in B.A.G Films for Rs 262 million. On
the expanded equity, Gehlaut's holding will drop to 19 per cent. The promoters
will have 38.39 per cent after the dilution, Prasad adds. Gehlaut's open offer
at Rs 13 per share for a further 20 per cent stake (as per regulatory requirement)
would find no taker as the share price of B.A.G Films has jumped to Rs 23. Meanwhile,
the company has decided to increase its authorised share capital from 100 million
t0 125 million equity shares of Rs 2 each. The board has also given an in-principle
approval to change the name of the company to B.A.G. Media Ltd or any variant
thereof, subject to approvals. In the FM radio business run through subsidiary
company B.A.G Infotainment, IDBI Bank has picked up a 10 per cent stake. The deal
with Bank of Baroda for a similar stake did not conclude, says Prasad. | 
