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Tag: IPO

  • Broadcast Initiatives fixes IPO price band at Rs 100-120, issue opens on 9 February

    Broadcast Initiatives fixes IPO price band at Rs 100-120, issue opens on 9 February

    MUMBAI: Broadcast Initiatives Limited, which holds Hindi news and views channel Janmat, has set the price band of its initial public offering (IPO) between Rs 100 and Rs 120 per share. to raise funds in the range of Rs 855 to Rs 1,026 million for expansion.

    The company will be raising Rs 1.02 billion at the top end of the price band. The proceeds of the issue will be used for the purchase of land and construction of studio, purchase of production, post production and broadcasting equipments and prepayment of loans.

    The issue will open on 9 February and close on 14 February. The company is offering 8.55 million equity shares of Rs 10 each which includes employee reservation of 1,00,000 equity shares at a premium.

    The net issue to the public will constitute 44.27 per cent of the fully diluted post issue paid-up capital of the Company. The promoters will continue to own 55.73 per cent of the equity shares on a fully diluted basis.

    Allianz Securities Ltd. is the book running lead manager (BRLM). Allianz Securities Limited, Enam Securities Private Limited and Almondz Capital Markets Private Limited are the syndicate members to the issue. The shares are proposed to be listed on BSE and the NSE.

    Janmat was commercially launched on 30 April 2006. A wholly owned subsidiary of Broadcast Initiatives Ltd., Sri Adhikari Brothers Media Limited (SABML) is in the process of launching a Marathi language channel, Mi Marathi. SABML has entered into an exclusive ad sales representation agreement with NDTV Media Limited for the sale of airtime on Mi Marathi channel.

  • TV18 net up 67% at Rs 193 million

    TV18 net up 67% at Rs 193 million

    MUMBAI: News network TV18 has announced a net profit at Rs 193.2 million, for the quarter ended December 2006 as compared to Rs 399 million shown during the corresponding quarter in 2005, an increase of 51 per cent YoY.

    TV18’s consolidated revenues were up 67 per cent (YoY) at Rs 647.46 million.

    Among the highlights of the quarter for TV18 were: scheme of arrangement completed; group company GBN’s IPO gets huge investor response, while internet revenues continued to post robust growth, rising over 120 per cent from the corresponding quarter in 2005.

    TV18 Consolidated Include revenues from CNBC-TV18, CNBC-Awaaz, moneycontrol.com, commoditiescontrol.com and various other Internet portals acquired by the company’s subsidiaries during the year. Current quarter’s revenues and costs are strictly not comparable with the same quarter in the previous year, since revenues and costs of Awaaz are being included from last quarter onwards, the company stated in a footnote.

  • WWIL, Zee News begin trading; price range as per market expectations

    WWIL, Zee News begin trading; price range as per market expectations

    MUMBAI: The debut performance of Wire & Wireless India Ltd (WWIL) and Zee News Ltd (ZNL), Zee Group’s demerged entities, on the boursess was along market expectation lines.

    Though WWIL, the cable distribution company, opened at the BSE much lower at Rs 80, it inched up to touch a high of Rs 139.80 before closing the day at Rs 120.80. Putting their faith on digitalisation, analysts had predicted the scrip to trade in the region of Rs 120-140.

    ZNL, on the other hand, opened higher at Rs 50 even as the market had expected it to be valued at Rs 35. The scrip touched a high of Rs 58.85 before tapering off to a low of Rs 33.65 and closing Wednesday’s trading at Rs 34.40.

    Speaking to a business channel, Zee Group chairman Subhash Chandra said WWIL would touch a revenue of Rs 10 billion in 12 months but the company would still not be profitable as it is in an investment mode. The multi-system operator (MSO) has already seeded 155000 set-top boxes (STBs) in the Cas (conditional access system) areas, enjoying a 50 per cent market share.

    ZNL should end the current fiscal with a revenue of Rs 1.8-2 billion and the target in five years is to have a turnover of around Rs 10 billion, Chandra said. The company is planning to launch a Marathi news channel this month.

    Meanwhile, another media and entertainment company listed on the bourses today. Shree Ashtavinayak Cine Vision closed at a premium of Rs 228, or 42 per cent higher from its IPO price.

  • Cinemax sets IPO price band at Rs 135-155

    Cinemax sets IPO price band at Rs 135-155

    MUMBAI: Cinemax India Ltd, which runs a chain of exhibition theatres, has set a price band of Rs 135 to Rs 155 for its forthcoming 8.9 million-share initial public offer (IPO).

    The issue, which constitutes 31.86 per cent of the fully diluted share capital of the company, will enable Cinemax to raise Rs 1.38 billion at the top end of its price band.
    “We will be using the IPO proceeds to widen our presence from 33 screens in 10 properties to 141 screens at 42 locations by FY09. We will have a pan India presence, though our focus will be in strengthening our position in the northern and western regions of the country. We currently have a presence in Maharashtra,” Cinemax chairman Rasesh Kanakia said at a press conference.

    The company owns 8 of its properties while two are leased. “This is a major differentiator from the other theatre operators. But moving forward we would look at the rental model to ramp up the numbers. Our locations are at high catchment areas in affluent and middle class neighbourhoods,” he said. Inox is the other theatre exhibitor which has a predominantly ownership model.

    Cinemax plans to set up a eight-screen multiplex in Chandigarh and have seven gaming zones at its new locations. The company earns 76 per cent of its revenues from ticket sales and five per cent from advertisements, Kanakia said, adding that the company enjoyed leadership position in Mumbai with a 33 per cent market share.

    For the first half of the current fiscal, Cinemax posted a revenue of Rs 347.32 million and a net profit of Rs 21.39 million. In the previous year, it reported a turnover of Rs 438.6 million while its net profit stood at Rs 75.05 million. The company had 2.73 million patrons in the first half of this fiscal as against 3.67 million in FY06.

    Pyramid Saimira Theatre Ltd, which is also into the cinema exhibition business, recently raised Rs 844.4 million through an IPO and ended trading at the BSE on Wednesday at Rs 189.95.

  • Global Broadcast News sets Rs 230-250 price band for public issue

    Global Broadcast News sets Rs 230-250 price band for public issue

    MUMBAI: Global Broadcast News Ltd, owners and operators of English news channel CNN-IBN, has set a price band of Rs 230 to Rs 250 for its Rs 1.05 billion initial public offering (IPO).

    The issue will open on 15 January and close on 18 January. The proceeds of the IPO will be used to meet the company’s growth plans and to complete the acquisition of Hindi channel IBN-7.

    “This is the second company we are taking to the markets. All future channel launches, which will be in the general news space will be through this company,” TV18 managing director Raghav Bahl said at an analysts meet in Mumbai today. TV18, which holds the business channels CNBC TV18 and CNBC Awaaz, was listed late last month after being restructured to meet regulatory guidelines.

    GBN will also hold 15 per cent in Web18, the company that holds all the internet properties of TV18.

    After the listing, foreign institutional investors will have a limit of investing upto 18 per cent. “GBN will have a foreign holding of eight per cent through Network18. This will mean that FIIs can hold 18 per cent in GBN,” Bahl clarified. Regulation permits news channels uplinking from India to have a maximum foreign holding of 26 per cent.

    The IPO is lead managed by ICICI Securities and Kotak Mahindra Capital Company Ltd. The co-book running lead managers to the issue are JM Morgan Stanley and IL&FS Investment.

  • Spice Telecom plans $150 mn IPO

    Spice Telecom plans $150 mn IPO

    BANGALORE: Karnataka’s first mobile telephony service provider Spice Telecom (Spice) has plans for a public issue totaling $150 million.

    Modicorp (51% stake) along with Telekom Malaysia (49% stake) own Spice. The red herring prospectus will be filed with Sebi and the IPO is likely to open in end March this year with Spice to planning to dilute around 15-20% of their stake.

    Spice has recently been awarded a railway outsourcing contract by IRCTC to provide services to the customers for a payment of Rs 1 billion over 10 years. The scope of work includes providing customers with information services across India, IVR, information and other services. The voice call to IVR ratio is around 20:80 according to Spice officials. The contract commences from March this year.

    Spice is present in 2 circles – Karnataka and Punjab with a customer base of around 2.5million of the total 100 million plus Indian subscribers. India has over 6000 railway stations and almost 80-90% of these are covered by mobile service providers. Spice is in negotiations with other service providers for carriage and other services in the other circles. This contract means that over the next ten years other service providers can provide railway information only through Spice.

    To ramp up and meet the service requirements, Spice plans to set up 4 regional hubs all over the country. This contract has been obtained by an equally shared joint venture between Spice and Spanco Telesystems (Spanco) from Mumbai. Spanco are to be the hardware system integrators for this venture.

    Speaking during a press briefing in Bangalore yesterday, Modicorp chairman BK Modi said, “Railways cover the length and breadth of the country physically, Spice will help connect the country telephonically,” while announcing that Spice planned to have kiosks on every platform in the country, where valid passengers can pick up sub $20/- mobile and with a Rs 50/- chip that can receive incoming calls free.

    “Currently we were lacking in distribution. Now with 6,000 railway stations we can take telephony to the bottom of the pyramid, a mobile is no longer a luxury, it is a necessity, and with 4 billion passengers that travel by train, the aim for reaching a subscriber base of 500 million by 2010 could be met even earlier,” Modi said.

    Spice along with Taiwanese suppliers provide low end as well as high end mobile phone instruments.

    Unconfirmed reports also indicate that Bollywood diva Katrina Kaif has been appointed brand ambassador for Spice. Priyanka Chopra, whose three year contract ends in December 2007, will also continue as brand ambassador, a company source says.
     

  • Info Edge debuts with 62% premium on BSE

    Info Edge debuts with 62% premium on BSE

    MUMBAI: DotCom days are here again. Info Edge (India), a provider of online recruitment, matrimonial classifieds and related services in India (through its Websites naukri.com, jeevansathi.com etc) made a very impressive debut with a 62.5 per cent premium at Rs 520 on BSE today against the offer price of Rs 320 per share of Rs 10 each.

    The price shot up to Rs 623.80 intraday before closing for the day at Rs 593.20, a hefty premium of 85 per cent with a volume of 7.8 million equity shares on BSE.

    The volume on NSE was higher at 11.6 million equity shares, taking the total volume on both the exchanges to 19.4 million equity shares on the very first day.

    The company would use issue proceeds to purchase or lease real estate for their office, to acquire companies and use alternative delivery models such as messages through mobiles, etc. ICICI Securities and Citigroup Global Markets India were the book running lead managers to the issue.

    The company entered the capital market on 30 October with an IPO of 5.32 million equity shares in the price band of Rs 290 to Rs 320 per equity share. The issue closed on 2 November. The issue constitutes 19.5 per cent of the fully diluted post issue paid-up equity capital of the company.

    Info Edge wants to maintain its position as the leading provider of online recruitment solutions in India and further enhance its position as one of the leading providers of internet based matrimonial services. In addition, it seeks to diversify into and establish a position of leadership in the diverse spectrum of the online classified market and also to create such markets in those segments, which are currently catered to by the print media only.

    In order to achieve these objectives, it will continue emphasis on innovation and customization of its products and services, enhance and diversify its advertising revenue streams, leverage offline relationships and diversify into providing online classified services in new market segments.

    Presently its business activities are limited to primarily providing information exchange services in the recruitment, matrimonial and real estate markets; and the activities are concentrated in India.

    Now the Company proposes to diversify into other segments of the online classifieds market such as automobile products, educational products and industrial products and expand its present business to the countries in the Middle East and in South Asia. It also intends to start several initiatives to enhance the features and qualities of its currently existing products and services.

  • Gemini, Udaya to be merged into Sun?

    Gemini, Udaya to be merged into Sun?

    MUMBAI : The market is expecting founder-promoter Kalanithi Maran to merge the affiliate companies, Udaya TV Pvt Ltd and Gemini TV Pvt Ltd, where he has significant equity interests, with Sun TV Ltd.

    Maran had early this year raised Rs 6.03 billion through a public float of Sun TV which included the Tamil and Malayalam channels. But he kept his popular channels in Telugu and Kannada outside the ambit of the initial public offering (IPO) as they were under separate entities and had other minority stakeholders.
    The speculation in stock trading circles is that the decision would soon be taken to merge the two profit-making companies with Sun TV, offering investors a width of strong channels across the four southern states of Tamil Nadu, Andhra Pradesh, Karnataka and Kerala.

    The rumour comes at a time when Sun TV has made an announcement in the BSE that its board would be meeting on 27 November to “consider the proposed merger of satellite television broadcasting companies.”

    The stock would see a sigificant boost if “these rumours” turn out to be true. “The valuation of the company will shoot up if Gemini and Udaya are merged with Sun. It is not only the topline which will inflate but the bottomline will also continue to be strong,” stock market analysts say.

    Indiantelevision.com’s attempt to reach senior executives in Sun TV to get an official confirmation proved futile. Maran was also not available for comment.

    The equity shares of Udaya TV, as of 7 March 2006, are held by Maran (66.67), S. Selvam (16.67 per cent) and S Selvi (16.66 per cent). In Gemini, Maran has 26.5 per cent, Kal Communication (a promoter Group company), 23.5 per cent, K Bharathi 30 per cent, Indira Anand 16 per cent and A Sai Siva Jyoti 4 per cent.

    Before going for an IPO, Maran consolidated his ownership position by buying out entire stakes of Sharad Kumar and Dayalu Ammal (wife of DMK president M Karunanidhi). Analysts say he will try to do the same thing by buying out the minor partners in Gemini and Udaya before he decides to merge these two companies with Sun TV.

    “We don’t know if he also already bought out the stakes. If he has, the path is clear for him to go ahead with the merger,” an analyst in a brokering firm says.

    What is further fuelling the speculation is that Maran has recently consolidated the Telugu and Kannada channels under the Gemini and Udaya brands respectively. Teja News has been renamed Gemini News and Aditya TV as Gemini Music. Ushe TV, similarly, is now called Udaya Movies.

    Gemini and Udaya already share a business relationship with Sun TV Ltd. For instance, the approvals for uplinking Udaya News, Ushe TV, Aditya TV and Teja News have been granted in the name of Sun TV Ltd.

    Maran also has the option of consolidating Gemini and Udaya’s financials and taking them for an IPO. “This, however, is not what the market is expecting. We believe these two companies will merge with Sun TV to create a media behemoth,” analysts say.

    The Sun TV scrip opened the trading day at Rs 1361.55, reached a high of Rs 1389 and closed at Rs 1363.85.

  • Essel Shyam Communication plans to raise Rs 600 million via IPO

    Essel Shyam Communication plans to raise Rs 600 million via IPO

    MUMBAI : Essel Shyam Communication Ltd, a 50:50 joint venture between Essel Group and Shyam Group, is looking at an initial public offering (IPO) size of Rs 600 million to fund its expansion plans.

    The company plans to set up four teleports, three of which are to be funded from the IPO proceeds. While it has obtained licenses for Mumbai and Noida (in the outskirts of Delhi), the other two teleports will come up at Cochin and Chennai or Hyderabad. The company has earmarked Rs 130 million from the IPO towards installation of teleports and Rs 15 million for playout facilities.

    “We hope to come out with the IPO in January-February. The final size will be decided through the book building process. We are looking at Rs 600 million and if there is a necessity, we will fund it through internal accruals,” Essel Shyam Communication ED and whole time director Lalit Jain tells Indiantelevision.com.

    The new facility at Noida will be for Ku band. Essel Shyam has an existing teleport in Noida where Zee and several other channels are uplinked. The new teleports in Mumbai and Noida are expected to be completed by 2007.

    For the expansion of VSAT operations, the company plans to invest Rs 85 million. Essel Shyam, which has seven hubs, proposes to add another three.

    The fund requirement for expanding deployment of DSNG (digital satellite news gathering) vans is Rs 80 million. These services are offered to customers for the purpose of news gathering, content transfer, live coverage and live uplinking of events. A further investment of Rs 175 million is planned to extend its existing BPO of 32 seats to a BPO/KPO of 500 seats. This will include KPO of 70 seats. New businesses will need Rs 50 million (Rs 10 million for system integration and Rs 40 million for radio frequency identification).

    Post-IPO, the promoters’ holding, which stands at 97 per cent, will faill to 70 per cent. Essel Shyam has filed Draft Red Herring Prospectus for an IPO with SEBI (Securities Exchange Board of India) and proposes to offer 55,00,000 equity shares of Rs 10 each through the book building process.

    The company is into the business of providing various services related to satellite communication such as VSAT, teleport, SNG/DSNG and BPO facilities. The company is providing teleport services to channels of Zee Group, Janmat, Zoom (Times Group), IBN 7, Hungama TV. Several regional channels like Shalom TV, MM TV, Sangeet Bangla, Total TV and Sudarshan TV are also using Essel Shyam’s teleport. The company has recently set up a modern facility for TV Channels from studio to the cable distributor.

  • Raj TV Network plans to raise Rs 1 bn through IPO

    Raj TV Network plans to raise Rs 1 bn through IPO

    MUMBAI: Raj Television Network plans to raise Rs 1 billion through its initial public offering (IPO). The issue proceeds will be used for launching a niche youth channel, producing telefilms, distribution of TV channels in overseas markets, creating a studio facility, strengthening existing content, and exporting films.

    Post-IPO, the promoters’ holding will drop from 100 per cent to 72.5 per cent. The IPO will consist of a fresh issue of 22,70,700 shares (15 per cent) and an offer for sale of 12,97,550 shares (10 per cent). Raj TV Network is also reserving 2.5 per cent as ESOPs.

    “We expect to raise Rs 1 billion. The final value will, however, be determined through the book building process,” Raj TV Network senior vice president, corporate planning and strategy Sathya Prakash tells Indiantelevision.com.

    The company has earmarked Rs 106 million for launching a niche channel aimed at the youth while Rs 71.5 million will be for the studio and Rs 62.5 million towards telefilms. For beefing up content, Raj TV plans to spend Rs 90 million, Rs 50 million for export of films and Rs 37.5 million for distribution of TV channels in overseas markets.

    “We plan to produce five telefilms a year which could also be released on multiplexes. We will be launching our channels internationally. These channels will have a component of local content in each of the markets,” says Prakash.

    Raj Television Network has already filed the draft red herring prospectus with the Securities and Exchange Board of India (Sebi) to enter the capital market with an offer of 35,68,250 equity shares of face value of Rs 10 each. The book running lead manager to the issue is Vivro Financial Services (p).

    The company, which operates Tamil channels Raj TV and Raj Digital Plus, posted a revenue of Rs 320 million during 2005-06 fiscal and Rs 92 million for the first quarter ended 30 June 2006. Pay-TV revenue accounts for 30-35 per cent of the company’s total earnings, says Prakash.