MUMBAI: Sahara One Media and Entertainment Ltd has decided to take the foreign currency convertible bond (FCCB) route to raise around $50 million (Rs 2.2 billion).

"We are in the final stages of documentation for issue of FCCBs. We plan to raise around $50 million," says a source in Sahara One Media and Entertainment Ltd.

Earlier the shareholders of Sahara had approved the issue of securities in the international market in the form of FCCBs, global depository receipts (GDRs) or other securities through public issue, private placements or preferential allotment. Sahara had also taken an enabling clause to raise up to $50 million.

The funds will be deployed for movie production, launch of a music channel, content acquisition for Hindi movie channel Filmy and general entertainment channel Sahara One.

Sahara has already tied up Rs 1.58 billion by diluting stake to investors. While C Sivasankaran's Aircel Televentures Ltd. (ATL) has put in Rs 1.2 billion for acquiring 14.98 per cent stake, Bennett, Coleman & Company Ltd (publishers of The Times of India) has invested Rs 378 million for a six per cent equity. Sahara is in the process of issuing a preferential allotment of 322.5 million equity shares to ATL with a face value of Rs 10 each at a price of Rs 372 per share.

Sahara is also in talks to rope in a strategic investor. After divesting stake to ATL, the promoters holding in Sahara stands at 73 per cent. While Bennett, Coleman and Company's holding is a little less than six per cent, the balance is with the public.