Balaji Telefilms soars 14% after board okays scheme of arrangement and amalgamation

By: | Updated: September 28, 2016 4:09 PM

Balaji Telefilms (BTL) shares jumped as much as 14.25 per cent on Wednesday after the company informed bourses that it has approved the composite scheme of arrangement and amalgamation among BTL and its wholly owned subsidiaries Balaji Motion Pictures, Bolt Media

BSE Sensex, NSE Nifty, stock markets todayBalaji Telefilms (BTL) shares jumped as much as 14.25 per cent on Wednesday after the company informed bourses that it has approved the composite scheme of arrangement and amalgamation among BTL and its wholly owned subsidiaries Balaji Motion Pictures, Bolt Media

Balaji Telefilms (BTL) shares jumped as much as 14.25 per cent on Wednesday after the company informed bourses that it has approved the composite scheme of arrangement and amalgamation among BTL and its wholly owned subsidiaries Balaji Motion Pictures, Bolt Media Ltd and their respective shareholders and creditors. At 9.43 am, shares of Balaji Telefilms were trading 9.82 per cent up at Rs 99. The scrip opened the day at Rs 100 and has touched a high and low of Rs 103 and Rs 98, respectively, in trade so far. Later, the scrip ended 9.65 per cent up at Rs 98.85.

The board of directors approved the demerger of the business and the business interests of BMPL in the film production undertaking into BTL and the amalgamation of Bolt with BTL. In a release, Balaji Telefilms said, “The demerger of the film production undertaking Balaji Motion Pictures (BMPL) into BTL will enable the consolidation of the film production business of BMPL with BTL, which is well established and has proven capabilities in content and production. Post demerger, BMPL will focus on the business of film distribution.”

The scheme is subject to the requisite approvals of shareholders of the company, stock exchanges, market regulator Securities and Exchange Board of India (Sebi), High Court and any other regulator authorities as may be required and if approved would be effective from April 1, 2016.

The implementation the Scheme shall not affect the share capital of Balaji Telefilms as both companies are wholly owned subsidiaries of BTL. “There will be consequential reduction of the share capital of BMPL pursuant to the implementation of the scheme.”

In the past one year, shares of the company have slipped nearly 2 per cent to Rs 90.15 till September 27, whereas BSE Sensex gained 10 per cent during the same period.

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