Hindi
Network18 to take over IFC, values movie company at Rs 1.75 bn
MUMBAI: Network18 Holdings, a subsidiary of Raghav Bahl-promoted Network18 Media and Investments, is in the process of taking over AIM-listed Indian Film Company (IFC).
In a fresh acquisition, the company has picked up 14.39 per cent stake in IFC for ?3.15 million (Rs 250.81 million). With this, Network18 will hold 35.99 per cent stake in the movie company.
Network18 will now have to make an offer to buy out the remaining shares. In a disclosure, the company said it has made a mandatory cash offer for all IFC shares (other than those already owned by the Network 18 Parties), as required by Rule 9 of the UK Takeover Code.
The offer price is at 40 pence per share, valuing the London-listed company at ?22 million (Rs 1.75 billion). This represents a premium of approximately 1.2 per cent to the closing mid-market price of 39.5 pence per IFC share on 29 July 2009, the last business day prior to the commencement of the offer period.
Network18‘s latest acquisition of 7,913,500 shares, or 14.39 per cent, of IFC was from a single shareholder in the market. The purchase was made at a price of 39.75 pence per share.
Indian companies are wanting to take complete control of their AIM-listed movie companies as they find it difficult to support their further fund-raising activities in these overseas entities. In a highly competitive movie environment, with many large Indian and international companies having entered the fray, they will need large resources as they scale up.
“IFC is the only exception where an entity exclusively focused on the Indian film industry is backed by a relatively passive minority stake of the sponsor, Network 18 Media. This puts IFC at a significant competitive disadvantage,” Network18 said.
The plan is to consolidate IFC as a Network18 Group company. The buy-out of shares would also lead to enhanced liquidity, capital appreciation and scale.
“This will allow it the full benefits of directly and openly leveraging Network18 Group‘s strengths such as its branding its association with media brands like CNN, CNBC, Viacom and Forbes, and will enable it to compete better with the other big names of the industry,” Network18 said.
IFC, which makes investments in both Indian films and films primarily targeted at the Indian audience, was admitted to trading on the AIM market on 18 June 2007. It operates as an externally managed India-focused motion picture company with outsourced production and distribution functions.
The company held investments with a carrying value of ?52.06 million, according to information provided till 31 March 2009.
IFC posted a net profit of ?3.89 million for the fiscal ended 31 March 2009, giving earnings per share of 7.07 pence.
The net asset value (NAV) of the company stood at 117.32 pence per share.
Hindi
New labour codes reshape rules for India’s media & entertainment sector
EY masterclass highlights unified framework, wage redefinition and expanded coverage.
MUMBAI: The new labour codes just rewrote the rulebook for India’s media and entertainment industry because when four old laws become four big codes, even the fine print needs a director’s cut. At the FICCI-EY Media & Entertainment Industry Report launch, EY partners Nirali Goradia and Lakshmi Ranganathan delivered a detailed masterclass on how the labour codes implemented in November 2025 are fundamentally changing the sector. The four consolidated codes Code on Wages, Code on Social Security, Industrial Relations Code, and Occupational Safety, Health and Working Conditions Code have replaced a fragmented set of central and state regulations that existed for decades.
The speakers explained that the new framework brings consistency across all types of establishments and workers. Previously, cine-workers, journalists and other media professionals were governed by separate, narrow laws. Now, definitions have been broadened: “audio-visual worker” now covers everyone involved in film, television, OTT, broadcasting and digital content creation, while “working journalist” extends to digital news platforms.
Key changes include:
- A uniform definition of wages, with at least 50% of total remuneration needing to qualify as wages for calculations like provident fund and gratuity.
- Expanded social security coverage for gig workers, platform workers and project-based freelancers.
- Unified working conditions, safety norms and leave entitlements.
- Simplified compliance through digital filings and a more principle-based approach.
Nirali Goradia emphasised that the codes aim to bring gig workers, freelancers and project-based talent under the social security net, though the exact contribution mechanism for platform workers is still being finalised. She noted that the intent is clear: no worker should be left out of basic protections such as provident fund, ESI, gratuity and safety standards simply because of the nature of their engagement.
Lakshmi Ranganathan highlighted that establishments in the sector must now carefully map their workforce—permanent employees, fixed-term contracts, freelancers and gig workers because different categories attract different obligations. She pointed out that gratuity vesting for journalists remains at three years, but the broader wage definition will impact calculations across the board. Organisations that previously computed contributions on basic salary (often 35-40%) will now need to move to at least 50% of total wages, potentially increasing costs by around 10% on a recurring basis. This change applies retrospectively for gratuity valuation as well, creating immediate balance-sheet implications for many companies.
The panel also discussed how the Occupational Safety, Health and Working Conditions Code has expanded the definition of “manufacturing process” to include digital printing and related activities. This brings more workers under safety and working-condition norms that were previously limited. Additionally, the codes introduce a clearer framework for fixed-term employment contracts, offering organisations flexibility while ensuring such workers receive benefits similar to permanent employees, including gratuity after one year.
One area still evolving is the treatment of platform and gig workers. The Social Security Code recognises this new category, but the exact funding mechanism and contribution structure are awaited. Industry experts expect a dedicated fund where platforms and employers will contribute, from which benefits can be extended to gig workers. Until the schemes are notified, organisations are advised to review their existing contractor and freelancer agreements to assess potential future obligations.
Both partners stressed the need for proactive steps. Companies should:
- Reclassify their workforce based on the new definitions of “employee” and “worker”.
- Review compensation structures to align with the 50 per cent wage threshold.
- Update contracts, especially for project-based and gig engagements.
- Reassess gratuity liabilities and payroll processes.
- Ensure compliance with expanded safety and working-condition requirements.
The speakers noted that while the codes bring much-needed unification and broader coverage, they also demand careful interpretation. The shift from highly prescriptive rules to a more principle-based regime means organisations must build internal frameworks to apply the codes consistently. This is particularly relevant for the media and entertainment sector, where project-based work, freelancers, short-term contracts and gig-style engagements are common.
In an industry that thrives on creativity and agility, the new labour codes are forcing a rewrite of the fine print. What was once a patchwork of rules is now a unified playbook and for media houses, the real plot twist will be how quickly they adapt to keep talent happy, costs manageable and stories flowing. The next few months, as states finalise their rules and schemes are notified, will be critical in determining exactly how this new framework reshapes hiring, compensation and workforce management across the sector.
