Prime Focus shares have witnessed a tremendous surge in the last 6 days, with the stock climbing approximately 54%. This surge is largely due to the company's ambitious plans. According to reports, Bollywood actor Ranbir Kapoor is set to acquire a stake in the company, which could strengthen the company's brand value and media connections.
A small-cap company in the stock market has created such a stir in the last six trading days that investors are astounded. The company in question is Prime Focus, whose shares have risen by 54 percent in just 6 days. On Friday, the stock made a new record of ₹175.70 and traded with a 10 percent increase during the trading session. Interestingly, this surge is fueled by the entry of Bollywood actor Ranbir Kapoor and a major announcement regarding a ₹3,000 crore film city project.
Share Issue Announcement Spurs Rally
The company approved the issuance of 462.6 million new equity shares in a board meeting on July 3. The total value of this issue is ₹5,552 crore. These new shares will be issued in two parts.
The first part, 430.1 million shares, will be issued by the company in exchange for some shares of its European subsidiary, DNEG S.a.r.l. The value of this share swap is ₹5,161 crore. The remaining 32.5 million shares will be issued directly by the company to raise funds, valued at ₹390.5 crore.
Ranbir Kapoor to Receive 12.5 Lakh Shares
This issue includes several large and well-known non-promoter investors. Bollywood actor Ranbir Kapoor will be allocated 12.5 lakh shares. In addition, Singularity Equity Fund and Axana Estates LLP will receive 20.8 lakh shares each. The largest share will go to Novator Capital Ltd, which will be given 11.1 crore shares in this issue.
This issue is part of the company's growth strategy, through which it aims to further strengthen its position in the global content and technology space.
State-of-the-Art Technology Film City to Be Built in Mumbai
On May 2, Prime Focus entered into a significant agreement with the Maharashtra government. The company is going to build a state-of-the-art film city in Mumbai at a cost of ₹3,000 crore. This project will be built on approximately 200 acres of land and is expected to generate employment for more than 2,500 people.
The company claims that this film city will be the world's most advanced digital content production facility. Not only Bollywood but also Hollywood and international film production houses may show interest in it. This project will also give a new boost to tourism.
Focus on the Growth of the VFX and Post-Production Industry
According to the latest report by Prime Focus, India's media and entertainment sector will grow rapidly in the coming years. The total market size of the VFX, animation, and post-production industry is estimated to reach ₹18,500 crore by 2026.
- Revenue from animation could be ₹5,600 crore
- ₹8,300 crore will be earned from VFX
- ₹4,600 crore is expected from post-production
The government is providing a cost subsidy of up to 30 percent to this sector, which is also encouraging foreign investors to invest in India.
Positive Sentiment in the Global Market
The demand for adult animation and high-quality VFX is increasing rapidly in America and Europe. Especially in America, the demand for adult animation has increased by 152 percent. This can directly benefit Indian studios. Companies like Prime Focus, which already have an international client base, are in a position to capitalize on this opportunity.
Growing Investor Confidence
In March 2025, the share of Prime Focus was at a 52-week low of ₹85. Since then, it has climbed by 107 percent. This means that those who invested only 3-4 months ago have seen their money double.
According to the FY24 report, the company's revenue is continuously improving, and the market's confidence in future projects is increasing. The entry of investors like Ranbir Kapoor and the announcement of a film city on such a large scale have further strengthened investor morale.
