A new investment firm chaired by noted director Shyam Benegal and focussed on Indian movies is set to float on Britain's Alternative Investment Market this month to raise £55 million. The venture, called the Indian Film Company, is backed by Indian media entrepreneur Raghav Bahl's company, the Network 18 Group. Bahl and Lord Meghnad Desai will be the venture's non-executive director.

The company's chief executive, Sandeep Bhargava, told newsmen here: "We are at the threshold of a structural revolution in India's film industry. Our ambition is to be at the forefront of this revolution and create enormous wealth for a new category of investor."

Bahl is quoted in reports here as saying: "We couldn't float in India because the regulations do not yet recognise films as an underlying asset. London was the obvious choice, and investors have been very encouraging."