Ram Gopal Varma announces Rs. 100 crore IPO

Company Release, December 7

MUMBAI

RGV Film Factor Limited (RGVFFL), the production company floated by prolific film producer and director Ram Gopal Varma will be raising Rs. 100 crore of equity through an Initial Public Offering (IPO).

UTI Securities Limited has been appointed as the lead manager to the IPO, which is likely to happen in the next three months.

Talking about his decision to take his company public, Varma said, “Not only is India the world’s largest producer of feature films, but in terms of the audience size, it is also the largest market. Additionally, I also believe that Indian films can become a much bigger commercial force in the global arena. Being a publicly listed company will help RGVFFL towards this end by making fund raising a relatively simpler exercise.”

Speaking about the IPO K Srinivas, President, UTI Securities Ltd, said, “While film production companies in the US are publicly traded multi-billion conglomerates, in India, barring a few production houses, the industry continues to fragmented and disorganized. There are very few companies in this space which are corporatized and conceive and execute projects on time and in budget. Among these RGVFFL is by far the most prolific.”

“As the entertainment industry continues to boom, I believe the RGVFFL IPO will offer investors an excellent chance to be a part of a company that has excellent growth prospects and leverages its promoter’s versatile talent, creativity, technical expertise and enormous brand equity to create stakeholder value,” Mr. Srinivas said.

Ram Gopal Varma has so far produced 53 films, in Hindi, Telugu and Tamil. He has himself directed 24 films in these three languages.

On his various joint ventures, Mr Varma said, “I wish to categorically state that henceforth RGV FFL will be the only company I have interests in. Whatever I do henceforth will be through and for RGV FFL. Personally I see a great future for RGV FFL and I will constantly strive to entertain and reward my shareholders and the entertainment industry.”

Mr Varma added, “I am of the firm opinion that entertainment today is like any other product. Earlier, creative people took their own time and worked in an undisciplined manner which resulted in massive budget overflows and the economics going completely out of control. But today, in the changed times, I am completely convinced that the entertainment industry can be systemized and corporatised.”

Reacting to a question on his deal with Adlabs Films Ltd, Mr Varma said, “The deal I have with Adlabs is for specific projects which have already been identified. Now they will be executed by RGV FFL which basically means that RGV FFL already has work orders. The money raised from the public issue will be to create and execute further new projects.”

Concluding his remarks Mr Varma added. “My experience, both as a producer and director in this industry, has taught me how to conceive projects, execute them on time, and create enormous brand equity in the market, thereby bringing economic value to my partners. With RGV FFL I propose to do the same with my shareholders.”

Mr. Srinivas said that the details of the issue including the structuring of the instrument and the price band will be announced shortly after a red herring prospectus is filed with the Securities and Exchange Board of India.

Ram Gopal Varma is the acclaimed director of films like Rangeela, Satya, Company, Bhoot and Sarkar. He is known for his taut story telling, technical finesse and risk taking ability, he is one of the few producer/director whose fan following rivals that of major film stars.

For further information contact:

Ravi Prakash

+919820321872

thefactory@rediffmail.com

Raju Kane

The Source

+919820045656

rajukane@sourcepr.com