BAG Films & Media Ltd has approved the issue of 10.379 million shares to Fidelity funds. The decision about preferential issue was taken in the board meeting held today.

The board has also given approval to 10 million warrants to be issued to the founders of the company.

The price for the shares and warrants has not been disclosed. The deal may help the company to fund its current projects. The warrants have been issued to Anu Films & Communications Private Limited, a promoter group company. The shares will be issued in name of Fidelity’s Indian arm, Fidelity Funds India.

The stock price was up by 5% in stock markets. The company has shown good results and is among major players in entertainment sector. The shares closed at Rs 65 in today’s volatile market session.