Motion Pictures listed on AIM in London
London, July 2. Another film company from India has come to join London's junior stock exchange. Established in 1995, as a division within UTV, UTV Motion Pictures started trading on Alternative Investment Market (AIM) of London Stocks Exchange, from Monday, July 2 2007.
The company had raised $70 million before its listing on Monday.
First, it was Kishore Lulla's Eros plc that got listed on AIM. In June 2007 'The Indian Film Company Limited' – a new film fund backed by Indian broadcaster Raghav Bahl – was listed on AIM, raising £55 million.
UTV Motion Pictures, valued at $302 million, is hoping to use the cash to raise its profile in the Hollywood studio system and capitalise on the growth of the Indian film market.
Says UTV founder-promoter Ronnie Screwvala, “We are delighted with the response from investors who recognise that UTV’s early adoption of the Hollywood studio model will enable the Company to establish a leading position in the Indian movie industry. We now have the funds to implement our strategy for rapid, profitable growth.”
According to reports the Indian film market was worth $2.1bn last year, up 24% on the previous year.
But UTV also wants to work more closely with the Hollywood studios. It has a share of the global distribution profits from Fox Searchlight films The Namesake and I Think I Love my Wife.
Business of Cinema adds: Total number of new ordinary shares placed on behalf of the company are 24,137,931, the number of ordinary shares in issue following the placing are 104,137,931. The percentage of enlarged issued share capital subject to the placing 23.18 per cent. The estimated net proceeds of the placing receivable by the company stood at $65.7 million.
Financial Times of London adds: Aim is suffering from “a perception issue” among US investors, who fear its lower disclosure requirements are making it a risky place to invest, according to the newest entrant to London’s junior exchange. Ronnie Screwvala, chairman of UTV Motion Pictures, the Indian movie studio that begins trading on Aim on Monday after raising $70m (£34.9m), told the Financial Times: “During the roadshow I must say about 25% of my time went on selling Aim as an exchange."
From UTV website:
UTV Motion Pictures, which produces and distributes films, has corporatised the Indian system of film making by producing highly researched movies with strong storylines backed by top-of-the-line talent in front and behind the camera. All this comes with the support of high voltage marketing and promotion of each film as a brand on its own.
Along with well known actors like Shahrukh Khan, Hrithik Roshan, Aamir Khan, Aishwarya Rai amongst others, UTV Motion Pictures is also working with a talent pool of directors that include the best in the field, viz. Rakesyh Omprakash Mehra, David Dhawan, Vishal Bhardwaj, Madhur Bhandarkar.
UTV's past films include India's official Oscar entry and BAFTA nominated Rang De Basanti that created new benchmarks across the world, Metro, Hattrick, Khosla Ka Ghosla, Chup Ke Chup Ke, Lakshya, Swades, Fiza and many more.
UTV, with its strategic alliances with Hollywood studios like Fox, Walt Disney, Sony, Will Smith’s Overbrook, is the largest movie studio from South Asia.
In 2007, UTV released two Hollywood co-productions with Fox Searchlight, making it the first and only Indian company to have mainline Hollywood film releases. First was the box office and critically acclaimed masterpiece by Mira Nair The Namesake. And second, I Think I love My Wife, with Chris Rock as actor and director.
UTV has a co-production agreement with Actor/producer Will Smith and his production company Overbrook Entertainment and Sony Pictures Entertainment, for films to be created and distributed worldwide. UTV and Overbrook will develop films with a global reach and appeal.
UTV is also co-producing M. Night Shyamalan next film The Happening with 20th Century Fox, scheduled to release in 2008.