PNC looks at LSE listing to raise Rs 200 cr

MUMBAI: Pritish Nandy Communications (PNC), the media and entertainment company, is looking at an overseas listing to raise close to Rs 200 crore and could list on the London Stock Exchange (LSE). If this happens, PNC will become the first media company to be listed on the LSE.

The funds will be used to get into overseas distribution business, ramping up production of movies and for creating content for the emerging, new media platforms. PNC is looking at an overseas listing and not raising funds in India as Indian investors continue to look at the entertainment sector as an unorganised industry and hence interest levels may be low, sources said.

“We are looking at raising Rs 200 crore, to diversify our operations and we have also received our shareholder’s approval for the same. However, the modalities have not yet been finalised,” Pritish Nandy, the chairman said.

The company is looking at setting up 100% subsidiary for its overseas distribution operations. To begin with, it will set up offices in the US, UK and Mumbai for domestic distribution.

Talking about the rationale of diversification, Mr Nandy said Indian entertainment was the next big thing in India after IT and the BPO sector. “The entertainment industry is growing at twice the pace of the GDP, and entertainment per se is endemic to India.”

Market sources stated that PNC is currently working with Sify to create specialised content and is also working with Broadmind, Group M’s entertainment and content vertical.

The focus will also be to partner with other motion picture companies to create big budget productions as today nobody has enough scale. PNC, for the year ended ‘05-’06, posted Rs 40 crore as its turnover and a net profit of Rs 7 crore.