The film and entertainment services company, which has a debt of 15 billion rupees, is also in talks with global private equity firms and other investors to raise 4-5 billion rupees.

"The idea of these fund raising exercises is to deleverage," Arjun said on Wednesday. "We should be able to launch the rights issue in the next 2-3 months, say around March."

The company, with a market capitalisation of about $70 million, hopes the two fundraising exercises will cut its debt equity ratio by a third to 1.2 to 1 by next year, Arjun said.