Telephoto chalks out Rs 60cr expansion plan

Telephoto has lined up about Rs 60 crore for expansion of its presence by setting up more multiplexes in Chennai. Telephoto is a BSE listed company, and SSI Ltd owns 55 per cent of the shares, and the remaining is held by the public. It plans to focus on the entertainment space for growth.

Kalpathi Suresh, chairman and CEO, SSI Ltd, told Business Standard that the company had roped in an investment banker seeking advice on funds required to be raised, and the options and the appropriate time for raising the money.

He said it could either be a preferential issue, a rights issue, a foreign currency convertible bonds, or a follow on issue. The final decision on this would be taken in a month's time.

The company expects to set up a multiplex with five screens, and a built-up space of 70,000 to 1 lakh sq ft, on its newly acquired property at Arumbakkam.

He said that the multiplex was expected to go on stream by early 2007 and the likely investment would be a minimum of Rs 30 crore.

Earlier, Telephoto had acquired a property in Villivakkam to build a multiplex with six screens, which was expected to be completed by the last quarter of the calender year. The investment in its Villivakkam multiplex would be between Rs 15 crore to Rs 17 crore and would have six screens.

"We envisage an investment of close to Rs 60 crore for the expansion of multiplexes, as we are on the look out for purchasing properties for this purpose," he said. Suresh added that the company would own property as well as the building with a long term perspective.