Cash-strapped Deccan Chronicle today rejected the single offer for its IPL team Deccan Chargers from PVP Ventures for Rs 900 crore as lenders to DCHL were not satisfied with the bid amount.
Deccan Chronicle, which owes around Rs 5,000 crore to lenders, put the Hyderabad-based team on the block to stave off bankruptcy but has now rejected the bid amount which is not sufficient to pay off its creditors.
Here are 4 things you should know about the single bidder for Deccan Chargers
1. PVP Ventures, a company founded by serial entrepreneur Prasad V Potluri and listed on the national bourses, is one of the biggest lenders to the Indian film industry and also the maker of the bilingual Tamil and Telugu film Naan Ee that grossed more than Rs 125 crore.
2. Potluri is quite influential in Telugu and Tamil cinema and has also producer other movies like Irandam Ulagam, Eega and Rajapattai.
3. The company's core business, however, is urban infrastructure and power generation. The company had been on a property selling spree in the last two years to focus on the core business. In 2008, PVP sold its hotel property in Ooty through its subsidiary AGS Hotels and Resorts to Mahindra Holidays for Rs 33 crore. In 2011 it sold its 90- ground prime property at Vadapalani in Chennai to education group, SRM for Rs 140 crore
4. According to a Tehelka report, Potluri had purchased stake in Jagan's businesses and was later awarded land by the Andhra Pradesh government. Potluri, reportedly, bought 13,88,888 Jagati shares held through PVP Business Ventures Pvt. Ltd and was allotted disputed land in Nadergul, Ranga Reddy district.
5. Potluri Vara Prasad hails from Vijayawada, Andhra Pradesh and is the co-founder of the Engineering school, Prasad V. Potluri Siddhartha Institute of Technology. He owns, PVP Energy, PVP Cinema and PVP Foundation under PVP Ventures.
6 PVP Ventures is a penny stock and is currently trading 5 percent higher at Rs 6.43 on the BSE.These types of stocks are generally considered to be highly speculative and high risk because of their lack of liquidity, large bid-ask spreads, small capitalization and limited following and disclosure.