Balaji Telefilms slumps over 6% since release of Udta Punjab; here is why

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Updated: June 23, 2016 4:47:43 PM

Balaji Telefilms shares have slumped over 6 per cent ever since the company's subsidiary Balaji Motion Pictures' controversial movie Udta Punjab was released on June 17.

Balaji Telefilms shares - Udta PunjabBalaji Telefilms shares have slumped over 6 per cent ever since the company’s subsidiary Balaji Motion Pictures’ controversial movie Udta Punjab was released on June 17.

Balaji Telefilms shares have slumped over 6 per cent ever since the company’s subsidiary Balaji Motion Pictures’ controversial movie Udta Punjab was released on June 17.

The share price of the company closed 1.74 per cent down at Rs 107.20 on Thursday. The scrip closed at Rs 116.30 on June 16 and Rs 109.10 on June 22.

The movie was marred by controversy after Central Board of Film Certification (CBFC) had sought 89 cuts in the Shahid Kapoor-starrer “Udta Punjab”. The Bombay High Court on June 13 cleared the decks for the release of ‘Udta Punjab’ after ordering deleting of a scene and a revised disclaimer.

Balaji Telefims CEO Samir Nair told CNBC TV that though it is too early to talk about profits from the movie Udta Punjab, its international sales have been impacted due to the controversy.

Nair further added, “the company had about 10 per cent extra cost factored in for contigency and the movie’s pre-sales have locked in about Rs 7.5 crore already”.

The film is produced Balaji Motion Pictures in association with Phantom Films. The Shahid Kapoor, Alia Bhatt, Kareena Kapoor Khan and Diljit Dosanjh starrer delves into how a large number of youth in Punjab have succumbed to drugs.

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