Prime Focus nosedives on VFX business sale

Shares of Prime Focus Limited skid more than 4 percent to hit 52-week low of Rs. 31.75 on Friday after the company received board approval for the sale of VFX business.

The media service provider said that the board has approved the sale of its business division, VFX business, as a going concern, on a slump sale basis, to DNEG Creative Services Limited, a subsidiary of the company.

Prime Focus has informed that it will sell VFX for up to Rs. 270 crore, subject to the approval of the shareholders. s The company further mentioned that the business transfer agreement is expected to be executed within 120 days from August 22, 2019.

The company had reported 9.21 per cent rise in net sales at Rs. 664.49 crore in Q1FY20 from Rs. 608.47 crore in Q1FY19. Moreover, its net Loss at Rs. 33.79 crore was down by 451.93% from Rs. 6.12 crore in Q1FY19.

Prime Focus is involved in the business of providing post-production services while its subsidiary DNEG Creative Services offers VFX and 3D conversion services.

The stock of Prime Focus has crashed nearly 64 percent in last one year. On Friday, the stock closed at Rs. 33.45, down Rs. 1.40, or 4.02 percent on the BSE. It hit an intraday high of Rs.35.15 and intraday low of Rs. 31.75.