Bollywood has always been a lucrative industry, be it for the starry eyed wannabe actors or the multiple investors looking at investing in films. Now we hear that Raksha Entertainment and HBS Realtors (through HBS Venture Promotions) have come together to launch a new SEBI approved alternate investment fund called HBS Raksha Movies Fund.
This newly setup fund aims to raise Rs. 150 crores with a green shoe option of Rs. 50 crore. According to the SEBI rules for AIFs, the minimum investment per investor is Rs one crore. The term of the fund is three years and is extendable by a year beyond the fixed term. Also in accordance with the guidelines set by SEBI, the fund will invest a maximum of 25% of the corpus in a project, which will give it space to invest in a minimum of four projects simultaneously. The HBS Raksha Movies Fund aims to give returns of 25% (pre-tax / post expense). While the fund is open to investing at any stage of movie development, the focus will be on distributing Bollywood movies.
Interestingly, with the second phase of the fund's operation that is led by Rakesh Sippy, MD- Raksha Entertainment and Jayesh Pandya, CFO- HBS Venture Promotions, Sippy intends to take up international distribution of movies.