 "Balaji Telefilms surges as board approves scheme of arrangement")
Balaji Telefilms has surged 14% to Rs 103 on the BSE after the company announced that its board has approved a composite scheme of arrangement between the Company and its wholly owned subsidiaries viz. Balaji Motion Pictures and Bolt Media.
Under the scheme of arrangement, the company will demerge the film production undertaking Balaji Motion Pictures (BMPL) and vesting the same in the Balaji Telefilms, and the amalgamation of Bolt Media with the Company.
“The scheme of arrangement will enhance efficiencies and combine similar business interest into one corporate entity, resulting in operational synergies, simplification, focused management, streamlining and optimization of the group structure and efficient administration,” Balaji Telefilms said in a statement.
The implementation of the scheme shall not affect the share capital of Balaji Telefilms as both entities are wholly owned subsidiaries of the Company. However, there shall be consequential reduction of the share capital of BMPL pursuant to the implementation of the scheme, it added.
At 09:29 am, the stock was up 11% at Rs 100 on the BSE, as compared to 0.09% rise in the S&P BSE Sensex. A combined 1.74 million shares changed hands on the counter on the BSE and NSE so far.
Thus far in 2016, the stock had underperformed the market by falling 35% against 8% rise in the benchmark index till yesterday.
Under the scheme of arrangement, the company will demerge the film production undertaking Balaji Motion Pictures (BMPL) and vesting the same in the Balaji Telefilms, and the amalgamation of Bolt Media with the Company.
“The scheme of arrangement will enhance efficiencies and combine similar business interest into one corporate entity, resulting in operational synergies, simplification, focused management, streamlining and optimization of the group structure and efficient administration,” Balaji Telefilms said in a statement.
The implementation of the scheme shall not affect the share capital of Balaji Telefilms as both entities are wholly owned subsidiaries of the Company. However, there shall be consequential reduction of the share capital of BMPL pursuant to the implementation of the scheme, it added.
At 09:29 am, the stock was up 11% at Rs 100 on the BSE, as compared to 0.09% rise in the S&P BSE Sensex. A combined 1.74 million shares changed hands on the counter on the BSE and NSE so far.
Thus far in 2016, the stock had underperformed the market by falling 35% against 8% rise in the benchmark index till yesterday.
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