About Us

The Indian Film Company Limited (“IFC”) is a newly incorporated, Guernsey registered company established as a registered closed ended investment fund to make investments in both Indian films and films primarily targeted at the Indian audience. The Company operates as an externally managed India-focused motion picture company with outsourced production and distribution functions. The Directors and the Investment Manager believe that IFC will be the first publicly traded film company specifically created to invest in a portfolio of Indian films and films primarily targeted at the Indian audience of varying genre, language and budget. The Company will benefit from a special relationship with Studio 18, a division of Network 18. Studio 18 was launched in June 2006 as a full production, co-production, marketing and global distribution platform. It has been agreed that the Company will have first right of refusal on any Film Project originated by Studio 18 but the Company will also retain the flexibility to explore and invest in Film Projects generated by other production companies. Network 18 is the holding company of Television 18 and Global Broadcast News, all of which are listed on the National Stock Exchange and the Bombay Stock Exchange.

Market opportunity and background
There has recently been significant international interest in the Indian entertainment industry and the combination of creativity and commercial opportunity it provides. The Indian entertainment industry continues to grow at a faster pace than the Indian economy and the film entertainment sub-sector, which generated revenues of approximately £1.02 billion in 2006, is growing faster still. The Directors and the Investment Manager believe the key growth drivers are the increasing per capita income of the Indian population; an expansion in audience, driven primarily by increased internationalism of Indian films and a greater number of multiplexes which are attracting more people to the cinema; and the exploitation of an increased number of revenue streams through which films and film products can be reached.

Investment Objective
The investment objective of The Indian Film Company Limited (the "Company") and its Subsidiaries, The Indian Film Company (Cyprus) Limited and IFC Distribution Private Limited (collectively the "Group") is to achieve total return for Shareholders through investment in a diverse portfolio of Indian films and films primarily targeted at the Indian audience across different genres, languages and budgets. The Group intends to build a film library of Intellectual Property Rights ("IPR") in various formats, including satellite, home video and mobile technology. The Directors and Film Investment Managers (Mauritius) Limited (the "Investment Manager") believe that the Group is well placed to take advantage of film investment opportunities and to capitalise on the growth that the Indian film industry is experiencing.

Operational Strategy
The Investment Manager, on behalf of the Group, captures opportunities in the entire value chain of film creation by; (i) sourcing and evaluating prospective film projects through a research-led investment process; and (ii) managing and structuring the production and distribution of such film projects. In sourcing prospective film projects the Investment Manager thoroughly evaluates film concepts, scripts, directors and cast in respect of current market data relating to current tastes and trends. The Investment Manager then assesses the feasibility of the project in relation to budget, timescales and the risks and rewards of each opportunity. Once a film project has been approved by the Board, the Group seeks to retain full ownership of all IPR relating to each film project, although in certain situations the Group may invest in a film project where it may not acquire all rights.

Investing Policy
The Investment Manager will adhere to the following investment policies and restrictions in making its recommendations to the Board:

  • Target Film Projects: Investments will be made in Indian films and films primarily targeted at an Indian audience that range across different genres, languages (including Hindi, regional Indian languages and English) and budgets, and to a lesser extent, cross-over films
  • Type of Investments: Investments will be funded by way of cash. It is not intended that Ordinary Shares will be used as consideration for any investments in Film Projects
  • Number of Investments: Once fully invested, the Investment Manager envisages that the Group should hold investments in a diversified portfolio of approximately 30 to 40 Film Projects
  • Investment Size: It is anticipated that the size of each of the Group's investments in individual Film Projects should not exceed 30 per cent. of the Group's Net Asset Value at the time of the investment
  • Borrowing: The Group may be permitted to use debt at the investment level where appropriate and may borrow, for investment or short-term funding purposes, amounts of up to 50 per cent. of the Group's Net Asset Value calculated at the time of borrowing. The Group may also utilise an overdraft and other short-term borrowing facilities to provide short-term working capital, including capital required to meet any expenses or fees payable by the Group
  • Uninvested Funds: The Group intends that cash pending investment, reinvestment or distribution should be placed in bank deposits, bonds or government-issued treasury securities in order to protect the capital value of the Group's cash assets.

Notes:

  • The Company has achieved its target of investing 100% of the funds raised (net proceeds raised of £52.78 million) within 18 months of admission to AIM as disclosed in the Admission Document.
  • The Company’s investment objective is focused primarily on capital appreciation by way of financing the production and distribution of Indian films. The Group intends to reinvest 75 per cent. of distributable profits into Film Projects which adhere to the strategy and parameters described above. The Directors intend, but are not required, to distribute 25 per cent. of distributable profits to Shareholders depending on the cash flow needs and long term objectives of the business.