Balaji Telefilms is betting big on its new digital venture ALT Digital Media and is planning to raise INR 1.50 billion (US$ 22 million) for the launch of ALT Digital Media Entertainment Ltd, which will operate as subscription video on demand (SVOD) based over the top (OTT) platform targeted towards urban Indians and the Indian diaspora.
The funds will be channelled in leveraging the group’s position and creative abilities in both television and film content, ALT Digital Media plans to create differentiated, original digital content for the entire connected ecosystem spanning mobile devices, web, smart TVs and game stations.
Balaji will raise the funds by issuing INR 1.50 billion (US$ 22 million) preference shares at INR 140(US$ 2.1) each to select global investors such as Atyant Capital India Fund – I, Vanderbilt University, GHI LTP Ltd, GHI HSP Ltd and GHI ERP Ltd. The issue price represents a 26 per cent premium over the average of the weekly high and low of the volume weighted average share price of the company during the past 26-week period.
To recall, the film and television production house, Balaji Telefilms Ltd will make its entry in the Indian over-the top (OTT) space with Alt Digital. The streaming service will offer exclusive original content to compete with the existing OTT service providers. Announced last year, Alt Digital is headed by Nachiket Pantvaidya.