Indian Film Share Discussion Threads

[darlocst] 22/1/2009 07:14

"IFC Requisition Grp Thursday 22 January, 2009
7:00A - Statement to IFC Shareholders

Communication to the Shareholders of

The Indian Film Company ('IFC' or 'the Company'))


From the information in the letter of 12 January 2009 from Shyam Benegal to IFC shareholders ('the Letter') issued by IFC and the IFC Requisition Group ('IFCRG') announcement of 16th January 2009 (see below), it may appear to those not involved in discussions that have been taking place that IFCRG's actions are unnecessarily hostile. Whilst the position of IFCRG remains firm, it is important for all shareholders to understand IFCRG's position and the history behind the EGM and why IFCRG was left with no sensible alternative to protect its investment in IFC and seek to achieve an appropriate and liquid share price.


IFCRG had sought to communicate directly to IFC's shareholders so that they could have a full understanding of IFCRG's requisitioning of the EGM. In the past two weeks a member of IFCRG has twice requested from the Company, as it is legally entitled to do, a copy of the most recent IFC share register. So far, IFC has not complied with this straightforward request. IFCRG considers that IFC's inaction is certainly not in the best interest of IFC shareholders. IFCRG seeks that IFC provide IFCRG with the information it has requested forthwith.


IFCRG is disappointed with the stance taken by IFC in obstructing IFCRG's efforts to ensure investors are able to consider and vote on the Resolutions at the EGM on the basis of a full understanding of the position......"

[darlocst] 22/1/2009 07:14

"IFC Requisition Grp Thursday 22 January, 2009
7:00A - Statement to IFC Shareholders

Communication to the Shareholders of

The Indian Film Company ('IFC' or 'the Company'))


From the information in the letter of 12 January 2009 from Shyam Benegal to IFC shareholders ('the Letter') issued by IFC and the IFC Requisition Group ('IFCRG') announcement of 16th January 2009 (see below), it may appear to those not involved in discussions that have been taking place that IFCRG's actions are unnecessarily hostile. Whilst the position of IFCRG remains firm, it is important for all shareholders to understand IFCRG's position and the history behind the EGM and why IFCRG was left with no sensible alternative to protect its investment in IFC and seek to achieve an appropriate and liquid share price.


IFCRG had sought to communicate directly to IFC's shareholders so that they could have a full understanding of IFCRG's requisitioning of the EGM. In the past two weeks a member of IFCRG has twice requested from the Company, as it is legally entitled to do, a copy of the most recent IFC share register. So far, IFC has not complied with this straightforward request. IFCRG considers that IFC's inaction is certainly not in the best interest of IFC shareholders. IFCRG seeks that IFC provide IFCRG with the information it has requested forthwith.


IFCRG is disappointed with the stance taken by IFC in obstructing IFCRG's efforts to ensure investors are able to consider and vote on the Resolutions at the EGM on the basis of a full understanding of the position......"

[energeticbacker] 19/1/2009 12:25

It's getting messy at Indian Film Company and a pity the propsed EGm is over in Guernsey

Not sure what specialist knowledge these rebel shareholders/hedgefund/ accountants have of the indian film industry - activism for the sake of it without actually presenting any credible reasons.

Worth having a look Investor's Champion blog at for a view.

[energeticbacker] 19/1/2009 12:21

Not sure what specialist knolwedge these hedge fund boys/accountants have of the indian film industry - just stirring things up. Activism for the sake of it without actually presenting any credible reasons.
Although I agree that the board has been pushed to providing more deatil on activities.

What's going to be the reaction of the rebels when they fail - will there be a rush for the door?

Investor's Champion (www.investorschampion.com) blog at has a view

[substp] 19/1/2009 07:59

Thanks guys . It does put doubt in ones heads though . To clear the air , why doesn't the board have an independent review ?

[nurdin] 17/1/2009 18:27

you have just put me off buying RCG...

[jeff h] 17/1/2009 13:55

...and thank you nurdin for the additional information.

I bought after the Interims having watched the stock go down and down without
any real apparent reason.

It will be interesting to see whether the 3 million trade that went through
earlier in the week ends up with the pro or anti group.

[nurdin] 17/1/2009 12:29

Thanks for that Jeff.

I had a chat with Elara Capital,(who hold 3.2% ) who confirmed that the move was by the hedge funds.The motion is unlikely to go through however (imo) as Raghval Bahl and Network 8(run by the Chairman) hold over 40% of the shares.Other Institutuinal holders are also against such a move as I understand it.

The good thing is that this cage rattling by the hedge funds is likely to force the company to take measures which should provide better returns for the investors going forward.One of these actions could be improving the liquidity in the shares which I understand will happen shortly.Improved dividend payment at the year end is another action being contemplated.

With such an excellent success record in the Bollywood film industry I dont think IFC will stay at a forward multiple of 1.8 for long.

[jeff h] 17/1/2009 12:02

Bollywood bloodbath as hedge funds fight for film company
Indian media mogul Raghav Bahl is fighting a group of hedge funds trying to eject him from the board of London-listed production house The Indian Film Company (TIFC), which made one of Bollywood's biggest ever films.

The shareholding hedge funds Altima and Kalusa, calling themselves The IFC Requisition Group, want to kick out Mr Bahl and another director, Alok Verma, for "failing to return value" to shareholders after the $41m (£28m) blockbuster, Ghajini, India's highest grossing film in its opening week, and another record-breaking film, Singh is Kinng.

Mr Bahl is the founder of India's Network 18 television group and was ranked as India's 15th most powerful man last year. His board has asked shareholders to reject the attempted coup at an extraordinary general meeting set for February.

Sources close to Altima said the group had 32pc of shareholders on its side and more who are sympathetic.

"Why have returns been so low? They want an independent review, but need board representation to do that," the source said.

However, sources close to the TIFC dismissed the hedge funds' plans as "a cynical attempt to get cash" from the company. "There is no way India's most important media operator is going to let that happen," he said.

[substp] 16/1/2009 17:27

But IFC ......... Not Waterhouse Nurdin.......:-)

Auditors
Ernst & Young LLP
PO Box 9
14 New Street
St Peter Port
Guernsey GY1 4AF

[substp] 16/1/2009 17:22

Satyam Computers

Srinivas Talluri
Chairman Managing Director
for and on behalf of
Price Waterhouse
Chartered Accountants

[barnetpeter] 16/1/2009 15:27

yes nurdin, the worries about Indian company "profits" following the recent scandals, the bollywood strikes and the EGM.

[nurdin] 16/1/2009 15:22

Interesting trades today

[nurdin] 16/1/2009 08:51

I am only a recent entrant and have not kept up with the background issues to be honest.All I have looked at is their recent trading statement and the brokers forecasts.I bought because they look very cheap on a forward earnings multiple of 1.86 with a PEG of just 0.02.

Is there anything particular issue I should be aware of?

[substp] 16/1/2009 08:29

Price Waterhouse doesn't see the every day running of the company . This might be a deeper issue .

I think IFCs accusation of a possible take over when they haven't had any correspondence with AIMFL is not good practice and I have to wonder if they are trying to blow smoke ????? :-(

It would be much better if AIMFL did make a statement but I guess they have their reasons . It will be pretty hard to pass on the back of no info.

Maybe it's just a warning shot over IFCs bows ????

[nurdin] 16/1/2009 08:16

Price Waterhouse are their auditors....dont they would let through anything that is not above board..as far as accounts go

[substp] 16/1/2009 08:15

It looks to me as if the IFC has gone to GREAT lengths to pat themselves on the back in the statement .

Maybe Altima India Master Fund Limited is worried about their %14.39 holdings and want to keep a closer eye on it without interference from the founder and his middle man .

[substp] 16/1/2009 08:01

The suggested replacements are both chartered accountants who have worked for some very big names . One in London and the other in India .

Does anyone else get a feeling that there is some mistrust here ?????

Should this be a flag of warning ??????

[nurdin] 16/1/2009 07:33

Have these been tipped anywhere? Like IC?

[3800] 14/1/2009 16:59

I got my EGM notification today I'm not sure if rocking the boat is a good thing or not. I did realise when I bought into this company they had a "close relationship" with studio 18 maybe some pressure will result in some business clarity. Anyone got an opinion on this?
3800

[nurdin] 14/1/2009 16:12

3m trade...cant say if its a buy or a sell.But the bid is still up so looks like a buy

[sat69] 12/1/2009 16:12

Nudged up today but sector peer EROS flying on the back of an IC buy of the year recommendation.

[bubloo] 11/1/2009 22:50

I did find this company interseting when i first researced it , however, network 18 directors are being accused of remunerating themselves excessively by using postal votes in agm in India in wake of satyam computers scandal. so i would be sceptical here till i see evidence of good corporate governance. if you read thier IPO document there are various complicated clauses written in to line the pockets of the advisors and directors of network 18. hence i suspect the institutional investors asking for change in directorship by calling for agm
be warned before you get too excited by this company.
I am continuing to dig more information but as of yet not optimistic about investing.
anyone with mor optimistic differing views welcome to counter my argument.
bubloo