MUMBAI: Chennai-based Pyramid Saimira Theatre Ltd (PSTL) plans to list its production and distribution subsidiaries in January next year, after demerging them from the parent company.

The company is in the process of appointing independent agencies to valuate its distribution subsidiary company, Pyramid Saimira Content Distribution Pvt Ltd (PSCDPL). For FY 2008-09, PSCDPL posted a turnover of Rs 2.5 billion and has so far distributed 100 movies.

PSTL had got Deloitte value its production arm, Pyramid Saimira Production International Ltd (PSPIL), in 2008 at Rs 4.5 billion. Now PSPIL is in the process of diluting 40 per cent stake to a strategic investor for Rs 1 billion. The cash-strapped company will use the money from the investor for production of 17 movies, which it had put on hold following a liquidity crunch.

"The respective subsidiaries have already achieved independent business credibility and now are hindred by the parent company. Each of these companies have created their own infrastructure, business model and management bandwidth independent of the parent company PSTL," Pyramid Saimira said, explaining its demerger move.

Further elaborating, Pyramid Saimira said: "The parent company underwent huge business loss and also had taken a higher amount of risk in the exhibition sector by locking in properties at higher price during 2007-08. Moreover, the group had certain credibility-related issues."

Pyramid Saimira, which plans to raise up to $100 million via GDRs/ADRs, has initiated the process of demerger and is planning to file for scheme of arrangement in the second week of October.