Prime Focus, which had closed yesterday at Rs.51.80, today went on to hit a new high at Rs.58.80 and is now trading at Rs.54 levels.

The stock price is up, reacting to Reliance Capital opposing the stake sale by Credit Suisse.

Last week, Credit Suisse had signed an agreement with the promoter group of Prime Focus to sell its stake in the company at a price of Rs 44.15 per share aggregating to Rs 463 crore. Credit Suisse was to sell 10.5 crore shares, or 33.12% shareholding of Prime Focus to the London-based Malhotra family, the promoter of the company. These shares were previously owned by Anil Ambani's Reliance Mediaworks Financial Services Pvt Ltd and then the shares were pledged to Credit Suisse.

Reliance Capital has requested SEBI to take immediate action, ordering a thorough investigation in this matter and immediately prevent / restrain Credit Suisse from selling the Prime Focus shares.

The sale of equity shares of Prime Focus below the intrinsic value would be illegal, in breach of fiduciary duties, and will be substantially prejudicial to the stakeholders of the Company including its 8 lakh shareholders and lenders (including LIC of India, GIC, New India Assurance, EPFO, Army Group Insurance Fund, MSEB Provident Fund).

Credit Suisse admittedly is in control of 33.12% shares of Prime Focus and Reliance Capital alleged that it  failed to make mandatory open offer, which is a ploy to enrich themselves. It said that Offer Price cannot be less than the 'fair Valuation,’ saying the Offer Price of Rs. 44.15 per Share is not even one-third of the true valuation of Prime Focus Shares of Rs. 150.