Arts and cultural institution Osian’s – Connoisseurs of Art Private Limited has raised Rs. 55 crores through a private equity placement to over five new investors at Rs. 1400 per share. The investors include a major Indian manufacturing company, three investors representing financial institutions and a major Oman-based investor group. The private placement pegs Osian’s valuation at approximately Rs. 590 crores.
In May 2006, when Boston-based investment management firm Venus Capital Management’s 5% stake acquisition for Rs. 11.2 crores at Rs. 560 per share had valued Osian’s at Rs. 224 crores. The latest round of funding will further Osian’s vision to become the first art-cultural institution in the world to go public.
Osian’s list of investors includes famous names such as Shiv Nadar, Kumar Mangalam Birla, Gautam Thapar, Jerry Rao, and Vallabh Bhansali among others. Osian’s was established in 2000 by Neville Tuli, who still holds a majority stake in the company.
The projected PAT for the current financial year is expected to be Rs. 18 crores and Rs. 40 crores for 2007-08. The latest round of fund raising will dilute promoters’ equity by 9.89% and take the capital base of the company to Rs. 4.35 crores.
Osian’s intends to utilize these funds for expansion linked to the Osianama project. The Osianama project involves a complex which will include three film theatres showing the best of cinemas from Asia, the Arab world, Africa and Latin America while making available cutting-edge post-production facilities to the best in the industry, all in the context of a world class museum and archive where its vast art collection will be displayed for the public. Within this growth plan, Osian’s will enter feature film production in the current year.
Read The Economic Times article for more details.
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