Srishti Videocorp Ropes In Rs 5cr Nri Investment

Uttar Pradesh-based Srishti Videocorp, managers of YES Gujarati channel, has gone shopping for funds to enhance the company's television activities. It has roped in a consortium of NRIs to invest Rs 5 crore in the expanded equity capital of the company.

It is also negotiating with Denmark-based MV Ed to hop on to Srishti's digital platform to start an educational channel aimed at Indian colleges of plus two level. Srishti at present is beaming via a digital transponder (capable of carrying up to seven channels) on Intelsat 704 leased for 10 years.

In order to augment resources, the V K Jain-promoted Srishti has roped in Mauritius-registered KSP Holdings to invest Rs 5 crore in 23,45,413 equity shares at a premium constituting a maximum of 20 per cent of the expanded equity capital of the company. KSP is promoted by Gopinath Pillai, Satpal Khattar and Haider M Sethawala involved in international trading.

 

It has proposed that fresh equity capital will be issued on a preferential basis, while the valuation of the equity shares will be as per Sebi guidelines at the minimum or at a negotiated price at the maximum. In Srishti Videocorp, incorporated in 1985, V K Jain and Associates hold 36 per cent equity, mutual funds floated by the likes of Morgan Stanley and Bank of India hold about 12 per cent together, while the rest is with the public. The paid up capital of the company is approximately Rs 9.3 crore.

However, the Foreign Investment Promotion Board (FIPB) has been deferring a decision on Srishti's proposal for months now, owing to objections being raised by the information and broadcasting ministry.

The I&B ministry's contention is that such media proposals should not be okayed as the government proposes to enact a comprehensive broadcasting law.

The FIPB, however, last year had okayed media proposals of the likes of Sony Pictures Entertainment, Asia TV and Magic Box, a venture of Zee TV promoter Subhash Chandra.

Srishti has proposed that it wants to enhance the telecast capacity of its digitally compressed satellite platform from six to 14 channels from its existing transponder on Intelsat 704.

The company has sought foreign funds to expand and consolidate its Noida-based studio operations, beam up to 14 digitally compressed channels by offering spare capacity to international and Indian broadcasters and strengthen the two existing channels, YES and YES Gujarati.

Srishti has also told the FIPB that a number of international broadcasters have shown interest in gaining foothold in India by broadcasting digital channels with programmes on youth, women and education.

Though nothing has been finalised, cable and satellite TV industry sources said Srishti is close to clinching a deal with Denmark-based MV Ed. Once the deal comes through, MV Ed is likely to broadcast an educational channel in English to start with and later introduce programming in regional languages too to cover the diversified languages of the country.