Providence invests Rs260 crore in UFO Moviez

Global private equity player Providence has invested around Rs260 crore in a late-stage growth capital placement in UFO Moviez, the world’s largest satellite-based digital cinema service operator.

Providence manages in excess of $23 billion in equity commitments over 100 investee companies across 20 countries.

The private equity player specialises in equity investments in media, entertainment, communication and information service companies.

This is the company’s third deal in India and the first in the media space — the previous two investments were in Idea Cellular and Aditya Birla Telecom, which holds a stake in Indus Towers Ltd.

The fund infusion will be a combination of primary and secondary transactions.

Bis Subramanian, managing director, Providence Equity Advisors India Pvt Ltd, said the company (UFO Moviez) is in a high-growth mode with exciting growth prospects.

“Thus a significant amount of our investment is primary and the proceeds will largely be used to fund growth/ expansion plans.

There is a secondary component also, but we are not in a position to disclose the split as yet. All I can say is that a group of shareholders who invested in the company at the start-up stage (other than Valuable Group) have exited partially to enable this transaction. Having said that, existing entities like Valuable Group, Apollo International Ltd and 3i Group continue to remain meaningful shareholders in the company,” said Subramanian.

While UFO will deploy a significant chunk of the funds raised from Providence towards business expansion, a small portion has been used already to acquire strategic stake in Scrabble Entertainment Pvt Ltd, India’s largest DCI-compliant digital cinema company.