Bijli is a conservative businessman who is unlikely to ever squander money.
After all, despite blockbusters like Taare Zameen Par and critical acclaim, he had decided to get out of the cinema production business because one of his movies crashed at the box office and he lost a lot of money.
He admits he lost his appetite for the business after that and decided to stick to business he knew best. Even in the Cinemax deal, he has preferred to follow a consortium approach to finance the Rs 560-crore acquisition.
He has thus roped in two private equity partners: L Capital, which belongs to the French luxury house LVMH, and Multiples Alternate Asset Management (Multiples), run by Renuka Ramnath, someone who had earlier funded Bijli when she headed ICICI Venture. Together, the two funds are putting in Rs 235.3 crore into the acquisition. In return, they will get a stake of 15 per cent in PVR.
For the rest of the money, Bijli has raised a debt of Rs 240 crore from three players: L&T Finance, GE Capital and Indo Star. Another Rs 60 crore will come from the company's internal accruals.
Bijli's contribution will be Rs 25 crore towards the equity of the company.
This might help Bijli spread the risks over a large number of stakeholders, but he knows he will have to pay the price for being so conservative: The promoter's equity in PVR will get diluted from 40.2 per cent to 32 per cent after this deal.