P. B. Films Limited, a company listed on the BSE (Stock Code: 539352), has announced its investment of ₹3 crore in Compulsorily Convertible Preference Shares (CCPS) of Yacht Trade and Finance Limited. The investment, disclosed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, aligns with the company's strategic approach to diversify its financial assets and strengthen its investment portfolio.

Investment Details

As per the company's official communication, P. B. Films Limited has subscribed to 30,00,000 CCPS at an issue price of ₹10 per share, amounting to a total investment of ₹3 crore. The investment has been made as a consideration other than cash, meaning that the company has transferred its existing loans from the "Loans and Advances" section of its balance sheet in exchange for these CCPS.

About Yacht Trade and Finance Limited

Yacht Trade and Finance Limited was incorporated on March 15, 1989, under the Companies Act, 1956, with its registered office in Tinsukia, Assam. The company is primarily engaged in investing in financial assets and related business activities.

Financial Performance (Last 3 Years):

• FY 2023-24: ₹64,300

• FY 2022-23: ₹74,400

• FY 2021-22: ₹1,52,400

Despite its modest turnover, Yacht Trade and Finance Limited serves as a vehicle for financial investments, making it an appropriate choice for P. B. Films Limited’s asset diversification strategy.

Nature and Purpose of the Investment

The investment in CCPS is aimed at:

• Enhancing asset strength by converting loans into long-term financial instruments.

• Investing in diversified financial assets to balance risk.

• Gaining future potential benefits from equity conversion after a minimum of 7 years and up to 20 years.

Key Terms of CCPS Investment

• The CCPS cannot be converted into equity before 7 years from the date of allotment.

• The maximum conversion period is 20 years from the allotment date.

• CCPS holders have no voting rights or decision-making authority in Yacht Trade and Finance Ltd.

• The investment does not constitute an acquisition of control, meaning P. B. Films Limited will not have any managerial influence over Yacht Trade and Finance Limited.

Regulatory Compliance & Transaction Nature

• This transaction does not fall under "Related Party Transactions", as none of the directors, promoters, or senior management personnel of P. B. Films Limited have any direct or indirect interest in Yacht Trade and Finance Limited.

• The investment does not require any regulatory or government approvals, ensuring a smooth execution.

• The transaction is conducted at arm's length, ensuring compliance with SEBI’s disclosure norms.

Strategic Implications for P. B. Films Limited

With this move, P. B. Films Limited is demonstrating its commitment to financial restructuring and asset diversification. By shifting its exposure from loans to preference shares, the company is aiming for long-term financial stability while retaining flexibility in asset management.

The investment in Yacht Trade and Finance Limited positions P. B. Films Limited in a more diversified financial landscape, providing opportunities for capital appreciation once the CCPS are converted into equity shares.

Conclusion

The ₹3 crore investment in 30,00,000 CCPS of Yacht Trade and Finance Limited marks a significant step for P. B. Films Limited in reshaping its financial structure. While the investment is purely strategic, the company remains open to future opportunities in financial assets. This decision aligns with P. B. Films Limited’s long-term vision of enhancing its investment portfolio and maintaining financial resilience.

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