Percept to consolidate group companies

NEW DELHI: Entertainment and communications company Percept Ltd has kicked off a restructuring exercise aimed at consolidating all group companies under a single holding entity. Commenting on the restructuring plans, Percept president, corporate affairs, Ajay Upadhyay said: ���We are planning to undertake a restructuring exercise which will involve changing the status of some group companies from functioning as pure operating entities to operating-cum-holding companies.���

Percept has applied to FIPB for conversion of status from operating company to operating-cum-holding company. It requires permission from FIPB as there is foreign direct investment in the company.

Percept Holding has a complex existing operating structure with as many as 20 group companies under it. It currently operates under three domains ��� entertainment, media and communications. Its entertainment companies include Percept Picture Company, Percept Talent Management, PDM India, PDM International, P9 Integrated and Tiger Sports Marketing.

The media arm includes Allied Media, Percept Out-of-Home, Media Agency Middle East and Percept Knorigin. Percept/H, Hakuhodo Percept, AMO Communications, IBD India, Percept Gulf Fz LLC and Percept Swift are clubbed under the group company���s advertising/communications arm and its consultancy company is called Perspectrum. In addition, there are three public relations companies under the group.

Percept is simultaneously scouting for tie-ups in the entertainment and advertising space. It is also learnt to be negotiating with a couple of private equity firms including Future Capital-promoted Indivision for infusion of funds to support its growth plans. Sources indicated that in the past, talks between Percept Holdings and Future Capital have fallen through, but that both parties have once again resumed negotiations.

A deal announcement is expected in the coming weeks. Mr Upadhyay, meanwhile, maintained: ���As of now, no private equity fund has picked up any stake in Percept Holdings, but we are in talks with various firms including Future Capital for an alliance.���