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Prime Focus Limited _IPO prospectus

Prime Focus Limited _IPO prospectus

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Published by manishkul-
Indian Entertainment Industry
Our Business
Our History and other Corporate Matters
Our Management
Our Promoters
Related Party Transactions
Dividend Policy
SECTION V - FINANCIAL INFORMATION
Unconsolidated Financial Statements
Financial Information of Group Companies
Selected Financial Information
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Indian Entertainment Industry
Our Business
Our History and other Corporate Matters
Our Management
Our Promoters
Related Party Transactions
Dividend Policy
SECTION V - FINANCIAL INFORMATION
Unconsolidated Financial Statements
Financial Information of Group Companies
Selected Financial Information
Management's Discussion and Analysis of Financial Condition and Results of
Operations

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Published by: manishkul- on Feb 28, 2009
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10/17/2011

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Red Herring Prospectus
Dated May 15, 2006Please read Section 60B of the Companies Act, 1956(The Red Herring Prospectus will be updated upon filing with the RoC)100% Book Building Issue
BOOK RUNNING LEAD MANAGER TO THE ISSUECENTRUM CAPITAL LIMITED
5th Floor, Khetan Bhavan,198, J. Tata Road, Churchgate, Mumbai 400 020.Tel : +91-22- 2202 3838, +91-22-3028 0400,Fax: +91-22- 2204 6096, Email: primefocus@centrum.co.inWebsite: www.centrum.co.in, SEBI Regn. no.: INM000010445AMBI Regn. no.:AMBI/087Contact Person : Ms. Sangeeta Sanghvi
REGISTRAR TO THE ISSUEINTIME SPECTRUM REGISTRY LIMITED
C-13, Pannalal Silk Mills Compound, L.B.S. MargBhandup (W), Mumbai 400 078Tel : +91-22-25960320 (9lines)Fax : +91-22-25960329E-mail : primefocus@intimespectrum.comWebsite: www.intimespectrum.comContact Person: Mr. Vishwas Attavar
ISSUE PROGRAMMEBID/ISSUE OPENS ONThursday, May 25, 2006BID/ISSUE CLOSES ONWednesday, May 31, 2006
PRIME FOCUS LIMITED
Registered Office:
Anand Kunj, North Avenue, Linking Road, Santacruz (West), Mumbai 400054;Telephone No.: +91-22 66925000; Fax No.: +91-22 66976310;Website: www.primefocus.co.in; E-mail: ipo@primefocus.co.inContact person: Mr. Nishant Fadia, Compliance Officer: E-mail: ipo@primefocus.co.in(We were Incorporated on June 24, 1997 as a Private Limited Company under Part IX of the Companies Act, 1956 at Mumbai and convertedinto a Public Limited Company vide a fresh certificate of incorporation dated April 24, 2000 as 'Prime Focus Limited')
PUBLIC ISSUE OF [
] EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. [
] PER EQUITY SHARE AGGRE-GATING RS. 10000 LAKHS BY PRIME FOCUS LIMITED ("THE COMPANY" OR "ISSUER") (THE "ISSUE"). THERE WILL BE AGREEN SHOE OPTION OF [
] EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. [
] PER EQUITY SHAREAGGREGATING TO RS. 1500 LAKHS. THE ISSUE AND THE GREEN SHOE OPTION AGGREGATE RS. 11500 LAKHS. THEISSUE WOULD CONSTITUTE [
]% OF THE FULLY DILUTED POST ISSUE PAIDUP CAPITAL OF THE COMPANY.PRICE BAND: RS. 450/- TO RS. 500/- PER EQUITY SHARE OF FACE VALUE RS. 10.ISSUE PRICE IS 45 TIMES THE FACE VALUE AT THE LOWER END OF THE PRICE BAND AND 50 TIMESTHE FACE VALUE AT THE HIGHER END OF THE PRICE BAND.
In terms of Rule 19(2)(b) of the SCRR, this being an Issue for less than 25% of the post-Issue capital, the Issue is being made throughthe 100% Book Building Process wherein at least 60% of the Issue shall be allocated on a proportionate basis to QIB Bidders, out of which5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIBPortion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids beingreceived at or above Issue price. If at least 60% of the Issue cannot be allocated to QIB Bidders, then the entire application money willbe refunded forthwith. Further, up to 10% of the Issue shall be available for allocation on a proportionate basis to Non-InstitutionalBidders and up to 30% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to validBids being received at or above the Issue Price. We have not opted for grading of our Initial Public Offering.
RISK IN RELATION TO THE FIRST ISSUE
This being the first issue of Equity Shares of the Company, there has been no formal market for the Equity Shares of the Company. Theface value of the shares is Rs.10/-and the Floor Price is 45 times of the face value and the Cap Price is 50 times of the face value. ThePrice Band (as determined by the Company in consultation with the Book Running Lead Managers ("BRLMs") on the basis of assessmentof market demand for the Equity Shares by way of book building) should not be taken to be indicative of the market price of the EquityShares after the Equity Shares are listed. No assurance can be given regarding an active and/or sustained trading in the Equity Sharesor regarding the price at which the Equity Shares will be traded after listing.
GENERAL RISKS
Investments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in this Issue unlessthey can afford to take the risk of losing their investment. Investors are advised to read the risk factors carefully before taking aninvestment decision in this Issue. For taking an investment decision, investors must rely on their own examination of the Company andthe Issue including the risks involved. The Equity Shares offered in the Issue have not been recommended or approved by the Securitiesand Exchange Board of India ("SEBI"), nor does SEBI guarantee the accuracy or adequacy of this Red Herring Prospectus. Specificattention of the investors is invited to the section titled "Risk Factors" on page ix of this Red Herring Prospectus.
ISSUER'S ABSOLUTE RESPONSIBILITY
Prime Focus Limited, having made all reasonable inquiries, accepts responsibility for and confirms that this Red Herring Prospectuscontains all information with regard to the Company and the Issue, which is material in the context of the Issue, that the informationcontained in this Red Herring Prospectus is true and correct in all material aspects and is not misleading in any material respect, that theopinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Red HerringProspectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect
LISTING
The Equity Shares offered through this Red Herring Prospectus are proposed to be listed on the BSE (Designated Stock Exchange) andthe NSE. We have received in-principle approval from the BSE and the NSE for the listing of the Equity Shares pursuant to letters no.List/Smg/sm/2006 dated March 13, 2006 and NSE/LIST/2110-8 dated March 23, 2006 respectively.
 
2
TABLE OF CONTENTSSECTION I - DEFINITIONS AND ABBREVIATIONS.................................................................................................i
Conventional/General Terms................................................................................................................................................iIssue Related Terms.................................................................................................................................................................iiCompany and Industry Terms...............................................................................................................................................vAbbreviations...........................................................................................................................................................................vi
SECTION II - RISK FACTORS............................................................................................................................................vii
Certain Conventions; Use of Market Data...........................................................................................................................viiForward-Looking Statements.................................................................................................................................................viiiCurrency of Presentation........................................................................................................................................................viiiRisk Factors...............................................................................................................................................................................ix
SECTION III- INTRODUCTION........................................................................................................................................1
Summary...................................................................................................................................................................................1The Issue....................................................................................................................................................................................3Green Shoe Option...................................................................................................................................................................3General Information................................................................................................................................................................9Capital Structure......................................................................................................................................................................15Objects of the Issue..................................................................................................................................................................23Basis for Issue Price.................................................................................................................................................................33Statement of Tax Benefits........................................................................................................................................................35
SECTION IV - ABOUT US...................................................................................................................................................39
Indian Entertainment Industry..............................................................................................................................................39Our Business.............................................................................................................................................................................44Our History and other Corporate Matters...........................................................................................................................55Our Management.....................................................................................................................................................................61Our Promoters..........................................................................................................................................................................69Related Party Transactions.....................................................................................................................................................70Dividend Policy........................................................................................................................................................................70
SECTION V - FINANCIAL INFORMATION..................................................................................................................71
Unconsolidated Financial Statements...................................................................................................................................71Financial Information of Group Companies........................................................................................................................84Selected Financial Information..............................................................................................................................................84Management's Discussion and Analysis of Financial Condition and Results of Operations.................................................................................................................................................................................85
SECTION VI - LEGAL AND OTHER INFORMATION................................................................................................89
Outstanding Litigation............................................................................................................................................................89Material Developments...........................................................................................................................................................91Government Approvals..........................................................................................................................................................92
SECTION VII - OTHER REGULATORY AND STATUTORY DISCLOSURES.......................................................93
Authority for the Issue............................................................................................................................................................93Prohibition by SEBI.................................................................................................................................................................93Eligibility for the Issue............................................................................................................................................................93Disclaimer Clauses, Filing, Listing, etc.................................................................................................................................93Expenses of the Issue...............................................................................................................................................................97Mechanism of Redressal of Grievances................................................................................................................................98
SECTION VIII- OFFERING INFORMATION.................................................................................................................99
Terms of the Issue....................................................................................................................................................................99Issue Structure..........................................................................................................................................................................102Issue Procedure........................................................................................................................................................................104
SECTION IX - DESCRIPTION OF EQUITY SHARES AND TERMS OF THE ARTICLES OF ASSOCIATION....123
Rights of Members...................................................................................................................................................................123Main Provisions of Articles of Association..........................................................................................................................123
SECTION X - OTHER INFORMATION............................................................................................................................141
Material Contracts and Documents for Inspection.............................................................................................................141Declaration................................................................................................................................................................................143
 
i
SECTION I : DEFINITIONS AND ABBREVIATIONS
TermDescription
The "Company" or "our Company" or "Prime Focus"Unless the context otherwise requires refers to Prime Focusor "Prime Focus Ltd" or "we" or "our" or "us"Limited, a company incorporated under the Companies Actand carrying on the business of post production facilitiesrelating to different media sectors like Television software,Advertising films and Feature films.
Conventional / General Terms
TermDescription
CDSLCentral Depository Services ( India) Limited.Companies ActThe Companies Act, 1956, as amended from time to timeDepositories ActThe Depositories Act, 1996, as amended from time to timeDepositoryA corporate body registered under the SEBI (Depositories and Participant) Regulations, 1996, asamended from time to time.DepositoryA depository participant as defined under the Depositories Act.ParticipantFEMAForeign Exchange Management Act, 1999, as amended from time to time, and the regulations framedthere under.FIIForeign Institutional Investor (as defined under Foreign Exchange Management (Transfer or Issue oSecurity by a Person Resident outside India) Regulations, 2000) registered with SEBI under applicablelaws in India.Financial Year /Period of twelve months ended March 31 of that particular year, unless otherwise stated.fiscal year / FY/ fiscalGovernment/ GOIThe Government of India.I.T. ActThe Income Tax Act, 1961, as amended from time to time.Indian GAAPGenerally accepted accounting principles in India.Memorandum/The Memorandum of Association of Prime Focus Limited.Memorandum of AssociationNRI/Non-ResidentNon-Resident Indian, is a Person resident outside India, who is a citizen of India or a Person of IndianIndian origin and shall have the same meaning as ascribed to such term in the Foreign ExchangeManagement (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000.NSDLNational Securities Depository LimitedOCB/ OverseasA company, partnership, society or other corporate body owned directly or indirectly to the extent of Corporate Bodyat least 60% by NRIs, including overseas trusts in which not less than 60% of beneficial interest isirrevocably held by NRIs directly or indirectly as defined under Foreign Exchange Management(Deposit) Regulations, 2000. OCBs are not allowed to invest in this Issue.SCRRSecurities Contracts (Regulation) Rules, 1957, as amended from time to time.SEBIThe Securities and Exchange Board of India constituted under the SEBI Act, 1992.SEBI ActThe Securities and Exchange Board of India Act, 1992, as amended from time to time.SEBI GuidelinesSEBI (Disclosure and Investor Protection) Guidelines, 2000 issued by SEBI on January 27, 2000, asamended, including instructions and clarifications issued by SEBI from time to time.SEBI TakeoverSecurities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations,Regulations1997, as amended from time to time.

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