Prime Focus jumps 9.8% in 2 days

Prime Focus rose 4.24% to Rs 30.70 at 12:26 IST on BSE, with the stock extending Wednesday's 5.37% gains triggered by the company's technology subsidiary raising Rs 45 crore through a private placement of optionally convertible debentures.

Meanwhile, the S&P BSE Sensex was up 38.95 points or 0.17% at 22,741.29.

On BSE, so far 2.84 lakh shares were traded in the counter as against average daily volume of 1.39 lakh shares in the past one quarter.

The stock hit a high of Rs 31.15 and a low of Rs 29.70 so far during the day. The stock had hit a 52-week high of Rs 43.05 on 9 April 2013. The stock had hit a 52-week low of Rs 23.75 on 5 December 2013.

The stock had outperformed the market over the past one month till 7 April 2014, advancing 5.56% compared with the Sensex's 1.93% rise. The scrip had, however, underperformed the market in past one quarter, declining 11.96% as against Sensex's 7.97% rise.

The small-cap company has equity capital of Rs 18.54 crore. Face value per share is Re 1.

Shares of Prime Focus have rallied 9.83% in two trading sessions from Rs 27.95 on 7 April 2014, after the company during trading hours on Wednesday, 9 April 2014, said its technology subsidiary has raised Rs 45 crore through a private placement of optionally convertible debentures. The stock had surged 5.37% to settle at Rs 29.45 on Wednesday, 9 April 2014.

Prime Focus said that its technology subsidiary Prime Focus Technologies (PFT) has raised Rs 45 crore through a private placement of optionally convertible debentures from a diverse base of high net-worth individuals. The funds raised would be used to fuel expansion of its Cloud Technology, CLEAR in the global markets as well as for retiring debt. After 2 years, investors will also have an option of converting up to 25% of the total principal amount into equity of PFT, the company said. As part of the process, the current base equity valuation of PFT as determined by a Big Four accounting firm has been established at approximately Rs.1100 crore, Prime Focus said in a statement.

PFT which has grown at over 150% YoY since inception six years ago, aims to replicate its initial success with broadcasters, in the North American studio production segment, Prime Focus said in a statement. In line with this strategy, PFT recently acquired US-based DAX, a leading provider of cloud-based production workflow and media asset management applications to the entertainment industry in North America.

Prime Focus Technologies is the technology subsidiary of Prime Focus, the global leader in media and entertainment industry services.

Prime Focus reported consolidated net profit of Rs 10.33 crore in Q3 December 2013 as compared to a net loss of Rs 63.27 crore in Q3 December 2012. Net sales rose 18.3% to Rs 213.68 crore in Q3 December 2013 over Q3 December 2012.

Prime Focus is a global visual entertainment services company that provides creative and technical services to the film, broadcast, and advertising market.

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