Digikore Studios Ltd, a leading visual effects and animation company, has withdrawn its earlier fund-raising resolution and instead approved the conversion of a ₹110 million loan into equity shares. The move strengthens the company’s balance sheet, reduces debt obligations, and signals confidence in long-term growth through equity-driven capital restructuring.
In a strategic financial decision, Digikore Studios Ltd announced that it has withdrawn its previously approved fund-raising resolution. Instead, the company will convert a ₹110 million loan into equity shares, effectively reducing debt while bolstering shareholder equity.
The decision reflects Digikore’s focus on capital efficiency and sustainable growth, ensuring that resources are aligned with its expansion in the visual effects (VFX) and animation industry. By converting debt into equity, the company aims to strengthen its financial structure, improve liquidity, and enhance investor confidence.
Industry analysts view this move as a prudent step for a creative-tech company operating in a competitive global market. With rising demand for VFX in films, OTT platforms, and gaming, Digikore’s restructuring positions it to attract new partnerships and scale operations without the burden of additional debt.
The company’s management emphasized that the conversion aligns with its long-term vision of equity-led growth, while maintaining flexibility for future investments and collaborations.
Key Highlights
-
Fund-Raising Resolution: Withdrawn by Digikore Studios Ltd.
-
Loan Conversion: ₹110 million loan converted into equity shares.
-
Strategic Goal: Strengthen balance sheet, reduce debt obligations.
-
Industry Context: Rising demand for VFX in films, OTT, and gaming.
-
Investor Impact: Enhances confidence through equity-driven capital restructuring.
-
Growth Outlook: Positions Digikore for sustainable expansion in global markets.
Sources: Reuters – Digikore Studios Corporate Filing; Business Standard – Loan-to-Equity Conversion Update; Economic Times – VFX Industry Growth Context