Shree Ashtavinayak raises $33 million via FCCBs

MUMBAI: Shree Ashtavinayak Cine Vision has raised $33 million (approximately Rs 1.32 billion) via foreign currency convertible bonds (FCCBs), with an option to raise an additional $5 million.

“The proceeds of the issue shall be utilised for production of movies and purchase of Intellectual Property Rights (IPR) of movies outside India,” says a company statement.

The bonds have a maturity of five years due in 2012. The underlying equity shares on conversion will be listed on BSE and NSE. The FCCBs will be listed on the Singapore Stock Exchange.

In July, the company had decided to raise funds for expansion by issuing FCCBs to the extent of $50 million. The board had also decided to issue warrants on preferential basis to the extent of $20 million.

Shree Ashtavinayak has nearly 12 films already on the floors for release next year including Golmaal Returns, Superstar, Chala Murari Murder Karne and Mr Fraud.