“It is a proud moment for us as an Indian company is soon going to list on Nasdaq with a valuation of $1.7 billion,” Malhotra told ET. “We have raised ₹3,000 crore (approx. $400 million), which will be used to help fund significant investments in technology, increase our capacity, hire additional talent, expand newer business segments such as gaming and content creation, and pursue acquisitions.”
Of the $400 million in gross transaction proceeds, $168 million is anchored by top-tier institutional and private investors, including affiliates of Sports Ventures, Novator Capital, affiliates of Fairfax Financial, and Arbor Financial.
The remaining $230 million will come from the cash currently held in the trust account of Sports Ventures. Malhotra said that a public listing is the next logical step for DNEG, one of the world’s leading visual effects and animation studios, which Prime Focus acquired back in 2014. “This transaction creates long-term stability for our teams while also allowing us to exploit the tailwinds in the media and entertainment industry and the explosion in demand for content, which are huge growth drivers for our company,” he said. “DNEG is already making great strides into new growth areas such as gaming and content creation partnerships, and we are perfectly positioned to exploit massive new opportunities in the Metaverse and the convergence of all forms of content creation.”
On listing in the US, Malhotra said that while the company has grown on the back of multiple mergers and acquisitions, having a Nasdaq listed currency will allow the company to pursue strategic opportunities. “We have just set the foundation and it just really opens up the world at this point. It’s almost like the rebirth of the company, 25-years later, ” said Malhotra. “What we have done is put India on the map. We have the DNA of an Indian company with western credibility. ”
Since Prime Focus took over DNEG, the company has won 5 Oscars in the last 7 years.
DNEG is expected to end the current fiscal year with over $400 million in revenue and a $100 million operating profit.
Malhotra said that almost 60-70% of the revenue is locked in for the next three months.
DNEG is currently working on the visual effects of over 15 films and shows. Some of the past projects include, ‘No Time to Die’, ‘The Matrix Resurrection’, ‘F9’, ‘Tenet’, ‘Avengers’ and more.
