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Tuesday, October 24, 2006

Raj television files DHRP with Sebi

Raj Television Network, Raj TV, the largest regional satellite television broadcaster in Tamil Nadu, has filed the draft red herring prospectus, DRHP with the Securities and Exchange Board of India, Sebi to enter the capital market with its initial public offer, IPO of equity shares, as per press release.

The company proposes to enter the capital market with an offer of 35,68,250 equity shares of face value of Rs 10 each at a price to be decided through the book building process, consisting of a fresh issue of 22,70,700 shares by Raj TV Network and an offer for sale of 12,97,550 equity shares by selling existing shareholders holding.

The net issue to the public is upto 32,43,866 equity shares and a reservation of upto 3,24,384 equity shares for the eligible employees of the company. The issue constitutes 27.50% of fully diluted post issue paid up capital of the company.

Upto 50% of the net offer to the public shall be allocated on proportionate basis to qualified institutional buyers (including 5% for Mutual Funds). Further, not less than 15% of the net offer to the public shall be available for allocation on a proportionate basis to non institutional bidders (HNI) and not less than 35% of the net offer to the public shall be available for allocation on a proportionate basis to retail bidders, subject to valid bids being received at or above the Issue Price.

The objects of the issue are to strengthen the existing facilities, enhance content and content acquisition, launching a new Television Channel, extending the broadcasting of channels to international markets, produce Short-films/ Tele-films, acquisition and export of films in international market, construct new studio premises and finance general corporate purposes.

The sole book running lead managers to the issue is Vivro Financial Services (p).

Raj TV Network is presently engaged in broadcasting two widely viewed channels ‘Raj TV’ and ‘Raj Digital Plus’ (“Raj TV Network”), which together make the company one of the largest regional satellite television broadcasters in Tamilnadu.

Raj TV network provides programmes ranging from films, serials, game shows, classical concerts and programmes related to spiritual tourism apart from discourses by spiritual gurus. The company also holds broadcast rights for spiritual programmes of more than 1000 hours of content with potential to add aggregate 100 hours of content every year.

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