NSE/BSE Codes: NSE Symbol: UFO, BSE Scrip Code: 539141

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 regarding update on pending arbitration proceedings between UFO Moviez India Limited and TSR Films Private Limited.

Involved Parties / Authorities:

  • UFO Moviez India Limited (Company)
  • TSR Films Private Limited (Counterparty)
  • Sole Arbitrator (Arbitration proceedings)
  • Company's Legal Advisers
  • BSE Limited and National Stock Exchange of India Limited (Recipients of disclosure)

Date / Timeline of Event:

  • Advertisement Agreement Date: 23rd December 2023
  • Arbitration Appointment: June 2025
  • Previous Intimation Date: 12th March 2025
  • TSR Termination Notice: 23rd September 2025
  • Interim Status Quo Order: 1st October 2025
  • TSR Challenge to Status Quo: 29th July 2026
  • Arbitral Order Date: 17th September 2026
  • Order Receipt Time: 17th September 2026 at 1:49 p.m. (IST)
  • Disclosure Date: 18th September 2026

Brief Description of Outcome / Dispute:

The dispute arises from an Advertisement Agreement dated 23rd December 2023 relating to in-cinema advertising rights on TSR screens. The Sole Arbitrator dismissed the Company's interim application under Section 17 of the Arbitration and Conciliation Act, 1996, which sought continuation of the contractual arrangement pending arbitration. The dismissal was on technical grounds, resulting in withdrawal of the interim status quo order granted on 1st October 2025. Consequently, the Agreement now stands terminated.

Impact of Outcome:

Financial Impact:
  • No costs, damages or other monetary liability have been imposed on the Company
  • The arrangement was generating negative returns on net level for the Company primarily due to execution issues at TSR end
  • The Company had been making deductions on account of execution issues, which is one of the subject matters of arbitration
  • Based on Company's assessment, the order is not expected to have material adverse impact on financial position
Operational / Business / Strategic Impact:
  • Termination of advertising agreement with TSR Films Private Limited
  • The arrangement was sub-optimal due to execution issues at TSR end leading to sub-optimal level of exploitation of advertisement rights
  • Company is evaluating the order with legal advisers to protect its interests
Other Implications:
  • The Order is confined to the interim application and does not adjudicate the merits of the case
  • The Company's defense and counterclaim in the main arbitration proceedings remain unaffected
  • The Order has no bearing on the main case where respective claims of parties remain pending

Next Steps / Required Actions:

  • Company is evaluating the order with its legal advisers
  • Company will take appropriate steps to protect its interests
  • Main arbitration proceedings continue with claim petition, defense and counter claim still pending before Sole Arbitrator