Prime Focus Ltd.'s stock has jumped 5% on Friday and shown an impressive 50% gain over the past month.
This stock movement comes after the firm acquired additional shares in step-down subsidiary DNEG, via preferential allotment.
The company will issue up to 46.26 crore shares of face value Rs 1 apiece for a price of Rs 120 per share to certain proposed allotees on a private placement basis, according to an exchange filing. Total consideration of the issue will be over Rs 5,552 crore.
Consolidating Stake In DNEG
DNEG is a global leader in stereo 3D conversion, holding a substantial share of the global content market. It is a prominent player in the visual effects, animation, and immersive content industry. Through this share swap, Prime Focus will acquire an additional 31.05% stake in DNEG. Post this transaction, Prime Focus's ownership in DNEG will significantly increase to 88.28%, solidifying its control over this key creative and technological asset.
Prime Focus has scheduled its Extraordinary General Meeting for July 26, 2025, to seek shareholder approval for these proposals.
Furthermore, Prime Focus is entering into an investment agreement with DNEG and Novator Capital Ltd. one of the proposed allottees in the preferential issue. This agreement will grant special rights to Novator Capital to protect its investment as a minority shareholder and financial investor. Following the issue, Novator Capital is set to hold a 14.40% stake in Prime Focus.
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