Mumbai-based Media Matrix Worldwide Ltd, a content, TV & music solutions provider and feature film production house, has made an investment to form two wholly owned subsidiaries -- nexG Devices Pvt Ltd and Digicall Holdings Pvt Ltd.
Setting up these subsidiaries seems to be part of Media Matrix's game plan to invest Rs 100 crore "in the next-generation businesses, including content and media business, call centres, handset distribution and e-commerce."
Media Matrix informed the BSE on Tuesday that it invested Rs 1 lakh each in nexG Devices and Digicall Holdings, and picked up 10,000 equity shares of each company.
Upon contacting, company secretary Mohd Zafar refused to divulge further details regarding the acquisitions. nexG Devices is currently in stealth mode with a "coming soon" sign flickering on its website.
Media Matrix had said earlier that it would invest up to Rs 25 crore each in the equity shares or preference capital of companies, including nexG Devices, DigiVive Services Pvt Ltd, DigiCall Teleservices Pvt Ltd and DigiVive Holdings Pvt Ltd. It has called for an extra-ordinary general meeting (EGM) on March 26 to discuss the same.
The funding for the investment is being raised through a preferential issue of optionally fully convertible debentures (OFCDs) and rights issue.
"The management is of the opinion that these businesses are expected to have substantial growth over the next decade on account of rising demand from online and e-commerce business," Media Matrix said in a filing.
The share price of Media Matrix closed at Rs 3.06 a unit on the BSE, down 4.97 per cent, giving it a market cap of Rs 24.76 crore.