INOX Leisure has filed its draft red herring prospectus with the Sebi to enter the capital market with its initial public offer of equity shares.
INOX Leisure, which operates a chain of multiplexes at premium locations in 7 cities across India under the 'INOX' brand, has filed its draft red herring prospectus, DRHP, with the Securities & Exchanges Board of India, Sebi, to enter the capital market with its initial public offer of equity shares, according to a release.
The company proposes to enter the capital market with an offer of 1,65,00,000 equity shares of Rs 10 each for cash at a premium to be decided through the book-build process.
The offer consists of a fresh issue of 1,20,00,000 equity shares, of which 2,00,000 equity shares are reserved for allotment to employees of the company, and an offer for sale of 45,00,000 equity shares of Rs 10 each by Gujarat Fluorochemicals, the promoter of the company.
The net issue to public, exclusive of the reservation of employees, would be 1,63,00,000 equity shares. This will constitute 27.17% of the fully diluted post issue paid up capital of the company.
Of the net issue to public, 50% has been reserved for allotment to qualified institutional buyers, of which 5% is reserved for allotment to mutual funds; 15% to non-institutional investors and the balance 35% to retail investors on a proportionate basis.
INOX has been promoted by Gujarat Fluorochemicals, one of India's largest manufacturers and exporter of refrigerants. INOX was set up to carry out the business of setting up, operating and managing a national chain of multiplexes.
INOX has a wide presence with 8 operational multiplexes, with a total of 32 screens, across 7 cities - Mumbai, Pune, Vadodara, Goa, Jaipur, Kolkata (2 multiplexes) and Bangalore.
INOX now plans to expand its network with new multiplexes in Hyderabad, Chennai, Lucknow, Vishakapatnam, Raipur, Kolkata, Darjeeling, Bangalore and Jaipur.
In addition to these, INOX has also entered into an alliance with Pantaloon Group of companies, as a multiplex operator, to real estate developments which the Pantaloon group of companies and funds managed by it, are developing or otherwise associated with.