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Telephoto Films places equity with 5 investors

Rajesh Chandramouli

CHENNAI, March 30

TELEPHOTO Entertainments Ltd (TEL) has placed about 20 per cent equity with five investors. The company plans an initial public offering in three to four months.

Mr. Suresh Menon, a film producer and actor, who is also the Managing Director of TEL, told Business Line, that IndAsia, a private equity fund promoted by Mr. Pradeep Shah, ex-Managing Director of Crisil, SMIFS, TAIB Capital, a wholly-owned subsidiary o f Tata Finance Ltd, and Usha Martin Ventures have picked up stakes in the company. He, however, did not reveal the sum raised from the placement.

He said that the funds raised would be used for working capital. Currently, TEL is one of the largest content providers for Sun TV. The company also produces programmes for Surya and Gemini TV.

Other plans, according to Mr. Menon, include setting up an Internet portal for Internet broadcasting and an animation studio.

He said that the business of content creation for media was capital-intensive. ``Advertisers are taking 90 days credit and we need to have at least 30 episodes on hand,'' he added. A producer has to invest in a television serial for at least five to six months before he gets his returns, he said.

Mr. Menon said that as of now, two daily soap operas are being telecast on Sun TV. One of which is `Nirangal', a Tamil serial which has completed 322 episodes, and the other is for kids - `Boom Boom Shakha Lakha'. ``This has a lot of animation as it targ ets the kids,'' Mr. Menon said.

These two serials are also played in Malayalam and telecast on Surya TV while the Telugu version is beamed through Gemini TV.