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Ganesh Films India Limited Draft Prospectus Dated: June 11, 2018 Please read Section 26 of Companies Act, 2013 Fixed Price Issue GANESH FILMS INDIA LIMITED Our Company was incorporated as a public limited company under the Companies Act, 2013 and registered with the Registrar of Companies, Mumbai with the name “Ganesh Films India Limited” pursuant to a certificate of incorporation dated April 6, 2018. Subsequently, our Company has acquired the entire distribution business of M/s Ganesh Films a proprietorship concern of Nambirajan Ganapathi Yadav w.e.f. May 09, 2018. The Corporate Identity Number of our Company is U74994MH2018PLC307613. For further details of change of name and registered office of our Company, please refer to the chapter titled “Our History and Certain Other Corporate Matters” beginning on page 101 of this Draft Prospectus. Registered & Corporate Office: #503, 5th Floor, Plot 461D, A Wing, Parshvanath Gardens, Bhaudaji Road, Kings Circle, Matunga, Mumbai-400019, Maharashtra, India | Tel No: +91 810 444 9343 | Fax No: Not Available | Email: [email protected] | Website: www.ganeshfilms.com Contact Person: Vijay Thakkar, Company Secretary & Compliance Officer OUR PROMOTERS: NAMBIRAJAN GANAPATHI YADAV AND NATRAJAN GANAPATHY THE ISSUE PUBLIC ISSUE OF 10,52,800 EQUITY SHARES OF FACE VALUE OF RS. 10.00/- EACH (“EQUITY SHARES”) OF GANESH FILMS INDIA LIMITED (“THE COMPANY” OR THE “ISSUER”) FOR CASH AT A PRICE OF RS. 80.00/- PER EQUITY SHARE, INCLUDING A PREMUIM OF RS 70.00/- PER EQUITY SHARE (THE “ISSUE PRICE”), AGGREGATING RS. 842.24 LAKHS (“THE ISSUE”), OF WHICH 57,600 EQUITY SHARES OF FACE VALUE OF RS. 10.00/- FOR CASH AT A PRICE OF RS. 80.00/- EACH AGGREGATING 46.08 LAKHS WILL BE RESERVED FOR SUBSCRIPTION BY MARKET MAKER TO THE ISSUE (THE “MARKET MAKER RESERVATION PORTION”). THE ISSUE LESS MARKET MAKER RESERVATION PORTION I.E. ISSUE OF 9,95,200 EQUITY SHARES OF FACE VALUE OF RS. 10.00 EACH FOR CASH AT A PRICE OF RS. 80.00/- PER EQUITY SHARE, AGGREGATING TO RS. 796.16 LAKHS IS HEREINAFTER REFERRED TO AS THE “NET ISSUE”. THE ISSUE AND THE NET ISSUE WILL CONSTITUTE 35.00% AND 33.09%, RESPECTIVELY OF THE POST ISSUE PAID UP EQUITY SHARE CAPITAL OF THE COMPANY THE FACE VALUE OF THE EQUITY SHARE IS RS. 10 EACH AND THE ISSUE PRICE RS 80.00 IS 8.00 TIMES OF THE FACE VALUE OF THE EQUITY SHARES THIS ISSUE IS BEING MADE IN TERMS OF CHAPTER XB OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2009 AS AMENDED FROM TIME TO TIME. For further details please refer the section titled “Issue Information” beginning on page no. 167 of this Draft Prospectus. In terms of the SEBI Circular No. CIR/CFD/POLICYCELL/11/2015, all potential investors shall participate in the Issue only through an Application Supported by Blocked Amount (“ASBA”) process providing details about the bank account which will be blocked by the Self-Certified Syndicate Banks (“SCSBs”) for the same. For details in this regard, specific attention is invited to "Issue Procedure" on page no. 176 of this Draft Prospectus.A copy will be delivered for registration to the Registrar of Companies as required under Section 26 of the Companies Act, 2013 RISK IN RELATION TO THE FIRST ISSUE This being the first public issue of our Company, there has been no formal market for our Equity Shares. The face value of the Equity Shares of our Company is Rs. 10.00 and the Issue price of Rs. 80.00/- per Equity Share is 8.00 times of the face value. The Issue Price (as determined by our Company in consultation with the Lead Manager as stated in the chapter titled ‘Basis for Issue Price’ beginning on page 77 of this Draft Prospectus) should not be taken to be indicative of the market price of the Equity Shares after such Equity Shares are listed. No assurance can be given regarding an active and / or sustained trading in the Equity Shares or regarding the price at which the Equity Shares will be traded after listing. GENERAL RISKS Investments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in this issue unless they can afford to take the risk of losing their investment. Investors are advised to read the risk factors carefully before taking an investment decision in this issue. For taking an investment decision, investors must rely on their own examination of the Company and this issue, including the risks involved. The Equity Shares issued in the issue have not been recommended or approved by the Securities and Exchange Board of India (“SEBI”), nor does SEBI guarantee the accuracy or adequacy of the contents of this Draft Prospectus. Specific attention of the investors is invited to the section titled ‘Risk Factors’ beginning on page 18 of this Draft Prospectus. COMPANY’S ABSOLUTE RESPONSIBILITY The Issuer, having made all reasonable inquiries, accepts responsibility for and confirms that this Draft Prospectus contains all information with regard to our Company and this Issue, which is material in the context of this Issue, that the information contained in this Draft Prospectus is true and correct in all material aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission or inclusion of which makes this Draft Prospectus as a whole or any of such information or the expression of any such opinions or intentions, misleading, in any material respect. LISTING The Equity Shares offered through this Draft Prospectus are proposed to be listed on the SME Platform of BSE Limited (“BSE”). Our Company has received an approval letter dated [•] from BSE for using its name in this offer document for listing of our shares on the SME Platform of BSE. For the purpose of this Issue, the Designated Stock Exchange will be the BSE Limited. LEAD MANAGER TO THE ISSUE REGISTRAR TO THE ISSUE FEDEX SECURITIES LIMITED BIGSHARE SERVICES PRIVATE LIMITED 305, Enterprise Centre, Nehru Road, Vile Parle (East), Mumbai 1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana 400099, Maharashtra, India Road, Marol, Andheri (East), Mumbai 400059 Tel No.: +91 22 26117553/ 26178936 Tel No.: 022 6263 8200 Fax No.: 022 2618 6966 Fax No.: 022 6263 8299 E-mail: [email protected] E-mail: [email protected] Website: www.fedsec.in Website: www.bigshareonline.com Contact Person: Rinkesh Saraiya Contact Person: Vipin Gupta SEBI Registration Number: INM000010163 SEBI Registration No.: INR000001385 Investor Grievance E-mail: [email protected] Investor Grievance E-mail: [email protected] ISSUE OPENS ON ISSUE CLOSES ON [•] [•] TABLE OF CONTENTS SECTION I – GENERAL ........................................................................................................................................... 2 DEFINITIONS AND ABBREVIATIONS ................................................................................................................ 2 FORWARD-LOOKING STATEMENTS ............................................................................................................... 14 PRESENTATION OF FINANCIAL, INDUSTRY AND MARKET DATA .......................................................... 16 SECTION II- RISK FACTORS ............................................................................................................................... 18 SECTION III - INTRODUCTION .......................................................................................................................... 32 SUMMARY OF OUR INDUSTRY ......................................................................................................................... 32 SUMMARY OF BUSINESS .................................................................................................................................... 35 SUMMARY OF FINANCIALS ............................................................................................................................... 38 THE ISSUE .............................................................................................................................................................. 42 GENERAL INFORMATION ................................................................................................................................... 44 CAPITAL STRUCTURE ......................................................................................................................................... 54 SECTION IV – PARTICULARS OF THE ISSUE ................................................................................................. 69 OBJECTS OF THE ISSUE ....................................................................................................................................... 69 BASIC TERMS OF ISSUE ...................................................................................................................................... 74 BASIS FOR ISSUE PRICE ...................................................................................................................................... 77 STATEMENT OF TAX BENEFITS ........................................................................................................................ 79 SECTION V - ABOUT THE COMPANY ............................................................................................................... 82 INDUSTRY OVERVIEW ........................................................................................................................................ 82 OUR BUSINESS .....................................................................................................................................................
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