MUMBAI: Hyderabad-based Color Chips (India) Ltd is considering a global depository receipts (GDR) issue of up to $10 million to fund its expansion plans.

"We are going in for a GDR issue as certain investors have shown interest to enter into our company. The size could be in the range of $5-10 million. We are likely to freeze on the exact amount in our next board meeting which is to be held on 1 March," Color Chips chairman and managing director Sudhish Rambhotla tells Indiantelevision.com.

Color Chips is also eyeing acquisition of a company in the US. "We are in negotiations with a few companies in the US for strategic reasons. We have appointed consultants who are working on it. This will help provide us a strong production pipeline. We would require funding for this," says Rambhotla.

Color Chips, which is engaged in service contracts, wants to move up the value chain. By having an outfit in the US, the company hopes to benefit in bagging bigger contracts.

The company will also require funding to execute co-production deals. The company has co-production deals in animation outsourcing work as well as graphics for live action movies. "We are providing high graphics for two live action movies for which we will have a share in revenues. We are also in co-production deals for animation," says Rambhotla.

Color Chips has worked in several projects including international co-production "Legend of the Dragon" with German studio BKN New Media. The company expects revenues to go up from Rs 117 million to around Rs 150 million in the current fiscal, says Rambhotla.