Raj TV to raise Rs 91 cr through IPO
Raj Television Network Ltd is planning to tap the capital market through an initial public offer (IPO) to raise about Rs 91 crore for part funding its expansion plans, which include setting up a movie studio and starting new channels.
By PTI |
NEW DELHI: Raj Television Network Ltd is planning to tap the capital market through an initial public offer (IPO) to raise about Rs 91 crore for part funding its expansion plans, which include setting up a movie studio and starting new channels.
"The IPO of 35 lakh shares of face value of Rs 10 each will be in the price band of Rs 221-257. Post issue, promoters' stake in the company would be reduced to 72.5 per cent from the present 100 per cent," Raj Television Network Ltd Director M Ravindran told reporters here.
The issue, which opens for subscription on February 14 and closes on February 23, would constitute 27.5 per cent of fully diluted paid up capital of the company. The shares would be listed on BSE and NSE.
Raj Television, which runs and manages two Tamil channels, Raj TV and Raj Digital Plus, would launch a youth channel at an investment of Rs 10.7 crore by June this year. "The multi-lingual channel would have game-shows and contests and would target the 14-40 age group," he said.
It is also coming up with a Tamil music channel, Raj Musix, at an investment of Rs 5 crore by April. The music channel would be funded entirely through internal accruals, Ravindran said.
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The company, which claims to have a 1.5 million household base in Tamil Nadu, said it has the rights to 70 per cent of Rajnikanth movies titles. "We have an overall 3,000 movie titles in Tamil," he said. Raj Television would increase its entertainment content through acquisition of new Tamil movie titles and has earmarked about Rs 9 crore for the purpose."A major thrust will be on acquisition of new movie titles," Ravindran said. The company would construct a film studio in Chennai at an investment of Rs 7.15 crore. "Land has been acquired but the construction will begin in April," he said.
It is also planning to make five short films of 90 minute duration at an investment of Rs 6.25 crore this year. "We have satellite rights in Sri Lanka, Singapore and Malaysia and are looking to target the Tamil speaking population in the US, UK, Japan and Fiji among others," he added.
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