Balaji Telefilms surges owing to consolidation of business

Balaji Telefilms has declared that the board of directors has considered and approved a composite scheme of arrangement between the company and its wholly owned subsidiaries viz. Balaji Motion Pictures and Bolt Media. The company will process demerger of the film production undertaking, Balaji Motion Pictures, which will consequentially reduce share capital of Balaji Motion Pictures. It will bring into effect amalgamation of Bolt Media with the company.

As of FY16, Balaji Telefilms has net worth of Rs 612.78 crore. Balaji Motion Pictures' revenue stands at Rs 22.82 crore and negative net worth of Rs 47.58 crore in FY16. Bolt Media has reported top line of Rs 65 lakh as of FY16.

Rationale of the scheme is that Balaji Telefilms will be able to streamline group structure, consolidation of scheme and reduction in costs. The scheme will not involve any cash transactions. Further there will not be any change in shareholding pattern of the company.

The share price of Balaji Telefilms has increased by 14.25 per cent on bourses in early trades; and is trading at Rs 99.35 on an intraday basis.