Prime Focus Subsidiary DNEG to Raise USD 200 Million

Mumbai, Jul 2 (PTI) Entertainment sector entity Prime Focus on Tuesday said its subsidiary DNEG Group is set to raise up to USD 200 million in funding from Abu Dhabi-based United Al Saqer Group.

The fundraising values the London-headquartered DNEG, which is into visual entertainment technology and world services, at USD 2 billion, as per an official statement.

The funding will be completed over two years.

After-announcement, the Prime Focus scrip tanked 8.84 per cent to close at Rs 132.95 a piece on the BSE on Tuesday against a marginal 0.04 per cent correction on the benchmark.

DNEG had a turnover of Rs 3,524 crore in FY24, accounting for 82.81 per cent of the consolidated turnover of the Prime Focus group, as per a regulatory filing.

The investment by UASG will accelerate DNEG group's strategy of innovation and diversification to evolve from a pure visual effects services provider to a sector-agnostic content production and AI-powered technology partner, as per the statement.

As part of the "strategic investment" from UASG, DNEG Group will create a visual experience hub in Abu Dhabi, which will lead to significant job creation in the region, it added.

DNEG will fully activate the technology division Brahma, which will democratise photo-real content creation in a wide range of applications.

The group's chairman and chief executive Namit Malhotra will continue in his current role and will be joined on the group's board by Nabil Kobeissi and Edouard Zard from UASG and Prabhu Narasimhan from NaMa Capital, a leading investor in DNEG group, the statement said.

Prime Focus' regulatory filing said two separate agreements have been signed for the fundraising, aggregating to USD 200 million. Of this, USD 100 million will flow in by July 7, another USD 10 million will be subject to timelines, terms and conditions as per mutual agreement, and the remaining USD 90 million will be over the next two years subject to terms and conditions.