The company, which listed on the BSE, has new plans for expansion and broadening its revenue base
DQ Entertainment (DQE), a global animation, gaming and live-action entertainment production & distribution company, listed on the Bombay Stock Exchange (BSE) on Monday. Its order book stands at $95.50 million (spread over 2.5 years), said a top official. The company is also producing two animated 3D stereoscopic feature films which will hit global screens by the winter of 2011.
The shares of the company listed at Rs135 on the BSE on Monday (29th March), a premium of 68.75% against the issue price of Rs80 a share. “We hope to increase our order book of $95.50 million, as we are coming up with a series of new projects,” said Sanjay Choudhary, financial controller, DQE.
Apart from the television series, the company is ready to foray into television feature films ranging from 85 minutes to 90 minutes. “We completely own both the properties, but we need to raise funds for the production of the two movies. We will have to part with around 50%-60% of ownership to raise the fund. There will be around two distributors for each film. The distributors will own 50%-60% stake in these two films. The revenue earned from the distribution will be divided among these two distributors (for each film) according to the stake they own,” said Tapaas Chakravarti, chairman and CEO, DQE.
“Besides the ownership revenue, we will also receive the revenue earned by the movies in the box office. This will not be shared with the distributors,” he added.
The company has also signed a co-production deal with Hive Enterprises Ltd for a new animated series—‘The Hive’. DQE will produce 78 episodes of 3D computer-generated imagery (CGI) ranging for 7 minutes each for each episode of ‘The Hive’. The total cost of production of the series is Rs24 crore. The company has still not finalised the global satellite broadcaster for this series.
Moneylife had earlier reported on how DQE has tied up with Walt Disney for co-producing three animated series. The company on Monday announced that it is partnering with Marvel Animation, LLC, a wholly-owned subsidiary of the Walt Disney Company and Method Animation for co-producing 26 new episodes for the second season of the animated series, ‘Iron Man: Armored Adventures Season Two’. The production budget for ‘Iron Man’ stands at Rs60 crore.
“We have signed one co-production deal with Disney and we are in the process of signing two more. Disney has already bagged the pay television rights for ‘Jungle Book’ for 29 countries. The rights are for four years,” confirmed Mr Chakravarti.
The company holds 20% equity stake in ‘Iron Man’. DQE will earn 20% of the total revenue from the series. The company also expects a substantial amount from merchandising, licensing and publishing agreements for this series. Earlier, the company was earning 95% of its revenue from production and the balance from merchandising, licensing and publishing agreements. Currently the company is looking at earning around 10%-15% from these marketing activities.
DQE is planning to employ 600 fresh recruits over the next two months, which will raise its employee strength to 3,800. The new recruitments are mainly for 3D HD stereoscopic animation production. Around 90% of the content produced by the company is in the 3D stereoscopic format.
“We produce 90% of our content in 3D stereoscopic (format) and we have plans to launch a series based on this format. We will be launching ‘Jungle Book’ by this calendar year. Next year, we will be launching ‘Peter Pan’, ‘Iron Man: Armored Adventures Season Two’ and ‘Charlie Chaplin’. All these series will be (in) 3D stereoscopic (format),” said Mr Chakravarti.
The stock markets have rallied strongly for the past seven consecutive weeks. Will the momentum continue? There is a 50% probability of that happening
The Sensex has been on a rally for seven consecutive weeks now. From 16,153 on 11 February 2010, it has rallied to a high of 17,644 for the week ending 26th March. Will this rally continue or is it time for the index to shed some of its gains?
Regular readers would be aware of the study done by Moneylife of the past performance of the Sensex when the index had witnessed a similar rally for weeks on end. The study is based on weekly market data from 5 January 1990. It has so far accurately predicted the continuation of the rally in its sixth and seventh week.
However, the chances for an encore in the eight week do not appear so robust.
During this period of 21 years, there have been 16 instances of a sustained rally in the Sensex for seven straight weeks. What happened in the 8th week in these 16 cases? In eight instances, the subsequent week has reported a continuation in the Sensex rally. A 50% positive outcome (8 out of 16) is hardly comforting.
Therefore, the probability that the rally will continue this week as well does not seem that likely.
On those occasions when the Sensex has actually continued its momentum, it has risen by an average of 1.85%. The index has seen a maximum gain of 3.63% and a minimum gain of 0.17%. In the eight instances when the Sensex has actually reversed its trend following a seven-week rally, it has averaged a drop of 2.50%, with a maximum fall of 4.70%.
For those who are betting big on the market, our advice would be to exercise caution. The chances for a reversal are getting higher. The markets may take a breather after this prolonged rally. On the contrary, the macro-environment of low interest rates in developed nations may mean than the index will continue to surge.
A number of private deemed universities have obtained a stay on the UGC order from various High Courts
The government will move the Supreme Court to challenge stay orders of High Courts in some states on a UGC direction to all deemed universities that they should not call themselves as universities, reports PTI.
Acting on the instruction of the government, the University Grants Commission (UGC) had last year directed 130 deemed-to-be-universities not to use the word ‘university’ with their names. Rather they should write their names followed by ‘deemed-to-be-university’, the UGC had said.
A number of institutions challenged the order in various High Courts which have stayed the UGC direction.
“Various High Courts, including Madras High Court, have stayed the UGC order. The government will move the Supreme Court to seek vacation of the stay order,” an HRD ministry official said.
The deemed university status is given under Section-3 of the UGC Act to institutions of excellence. Such institutions used to call themselves ‘deemed-to-be-university’ till 2006.
However, these institutions were allowed by the UGC to remove the word ‘deemed’ from their name and identify themselves as universities in 2006. The UGC had given the permission following a recommendation by a committee comprising heads of UGC and All India Council of Technical Education (AICTE) and a former Secretary of Higher Education.
But the UGC decision was later challenged in the Delhi High Court. The petitioner claimed that the notification had created confusion with no visible difference between a university set up under an Act of Parliament or state legislature and a deemed university set up under the University Grants Commission Act, 1956.
The HRD ministry then asked the UGC to withdraw its notification of 2006. The UGC was also asked to direct the deemed universities not to use the word ‘university’ with their names.
A number of private deemed universities have challenged the UGC direction.