DAR Capital eyes 26% stake in Valuable Media

New Delhi: DAR Capital, promoted by non-resident Indian Arun Rangachari, will pick up 26% stake in Valuable Media Ltd (VML) for Rs 100 crore. The DAR Capital Group has already identified the media and entertainment domain as a destination for big investments. It has committed over Rs 650 crore investments on movies and cricket.

VML, the Mumbai-based promoters of UFO Moviez, has sought approval of the Foreign Investment Promotion Board (FIPB) to raise Rs 100 crore from DAR Capital.

Valuable Media will use the fund to launch—small mall technology (SMT)—a satellite-based digital distribution of films in smaller towns and also to push its consumer box business in India and other markets.

Valuable Media is a subsidiary of the Valuable Group promoted by Sanjay Gaikwad. The Valuable Group operates in primarily three industry verticals—media, technology and infrastructure. Promoted by VML, UFO Moviez is the satellite-based digital movie

distribution firm that will bring the IPL matches live to 1,000 screens in theatres and multiplexes next month.

Meanwhile, Rangachari’s other firms like DAR Ventures and Thurles India Investments will together invest over Rs 135 crore in Valuable Group’s infrastructure arm—Valuable Destination Private Ltd (VDPL).

In 2008, the Sanjay Gaikwad-led Valuable Group had acquired Disney-created 'MovieBeam' company. 'MovieBeam' is a push VoD service launched by Disney in 2005 wherein movies re-beamed wirelessly into homes to a set-top box. The Valuable group acquired MovieBeam via DAR Capital in July 2008 which handled the complete acquisition process on behalf of Valuable Group.

DAR Capital Group has already announced the production of 11 Bollywood films with a war chest of around Rs 200 crore. It also plans to spend Rs 150-200 crore on regional cinema over next three years. The move follows its acquisition of theatrical telecast rights of the Indian Premier League (IPL) from the Indian cricket board for Rs 330 crore for the next 10 years.