GECs
Ram Gopal Varma to float Rs 1 billion IPO
MUMBAI: After Subhash Ghai, it is the turn of noted film maker Ram Gopal Varma to take his production company public. RGV Film Factory Limited (RGVFFL) plans to raise Rs one billion through an Initial Public Offering (IPO).
UTI Securities Limited has been appointed as the lead manager to the issue. The funds will be mainly used for movie production, says UTI Securities president K Srinivas. “The company may get into film distribution as well, but that is only in the second stage,” he adds.
The entertainment industry can be systemized and corporatised.Not only is India the worlds largest producer of feature films, but in terms of the audience size, it is also the largest market. Additionally, I also believe that Indian films can become a much bigger commercial force in the global arena. Being a publicly listed company will help RGVFFL towards this end by making fund raising a relatively simpler exercise, says Varma.
Varma has so far produced 53 films, in Hindi, Telugu and Tamil. He has himself directed 24 films in these three languages.
Varma already has a deal with Adlabs for production of 12 movies. Reacting to a question on his deal with Adlabs Films Ltd, Mr Varma said, The deal I have with Adlabs is for specific projects which have already been identified. Now they will be executed by RGV FFL which basically means that RGV FFL already has work orders. The money raised from the public issue will be to create and execute further new projects.
Speaking about the IPO K Srinivas, President, UTI Securities Ltd, said, While film production companies in the US are publicly traded multi-billion conglomerates, in India, barring a few production houses, the industry continues to fragmented and disorganized. There are very few companies in this space which are corporatized and conceive and execute projects on time and in budget. Among these RGVFFL is by far the most prolific.
GECs
Sebi sends show-cause notice to Zee over fund diversion, company responds
Regulator questions 2018 letter of comfort and governance lapses; company vows robust legal response
MUMBAI: India’s markets watchdog has reignited its long-running scrutiny of Zee Entertainment Enterprises, issuing a sweeping show-cause notice that drags the broadcaster and 84 others into a widening governance storm.
The notice, dated February 12, has been served by the Securities and Exchange Board of India to Zee, chairman emeritus Subhash Chandra and managing director and chief executive Punit Goenka, among others. At its heart: allegations that company funds were indirectly routed to settle liabilities of entities linked to the Essel Group.
The regulator’s probe traces its roots to November 2019, when two independent directors resigned from Zee’s board, flagging concerns over the alleged appropriation of fixed deposits by Yes Bank. The deposits were reportedly adjusted against loans extended to Essel Group entities, triggering questions about related-party dealings and board oversight.
A key flashpoint is a letter of comfort dated September 4, 2018, issued by Subhash Chandra in his dual capacity as chairman of Zee and the Essel Group. The document, linked to credit facilities availed by certain group companies from Yes Bank, was allegedly known only to select members of management and not disclosed to the full board—an omission SEBI believes raises red flags over transparency and governance controls.
Zee has pushed back hard. In a statement, the company said it “strongly refutes” the allegations against it and its board members and will file a detailed response. It expressed confidence that SEBI would conduct a fair review and signalled readiness to pursue all legal remedies to protect shareholder interests.
The notice marks the latest twist in a saga that has shadowed the broadcaster since 2019. What began as boardroom unease has morphed into a full-blown regulatory confrontation. The final reckoning now rests with SEBI—but the reputational stakes for Zee, and the message for India Inc on governance discipline, could scarcely be higher.
