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Friday, January 18, 2008

Sea TV Network files DRHP with SEBI

Sea TV Network, an Agra (UP) based company providing services of a Multi System Operator to various local cable TV operators, has filed a draft red herring prospectus (DRHP) with the Securities & Exchange Board of India (SEBI) to enter the capital market with an initial public offering (IPO) of 10,000,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

The issue comprises a promoters’ contribution of 3,351,000 equity shares of face value of Rs 10; 500,000 equity shares of face value of Rs 10 reserved for the employees of the company; and a net offer to the public of 6,149,000 equity shares of Rs 10 each, of which 614,900 equity shares being 10% of the net offer to the public to be compulsorily allotted to qualified institutional bidders.

The net offer to the public would constitute 36.17% of the fully diluted post issue paid up capital of the company. The project has a participation of Rs 895 lakh from Allahabad Bank. The company is considering a pre-IPO placement with certain investors, subject to a minimum of 25% of the post-issue paid up equity share capital being offered to the public. The equity shares are proposed to be listed on Bombay Stock Exchange and the National Stock Exchange.

The company focuses on the cable distribution business and intends to emerge as a MSO with an all India presence, while working in consonance with the broadcasters and the viewers. Sea TV also has its own free-to-air local channels, programmes of which are produced by its own production team. These include SEA News (24-hour news channel of Agra city), SEA Jinvani (religious channel for the Jain community), SEA TV (local cultural programmes channel) and SEA Bhakti (24-hour religious channel). It already has a network of about 150 franchisees throughout Agra city.

The objects of the issue are to raise financial resources for: Setting up complete Digital Headend and network for implementation of Conditional Access System (CAS); Setting up network for complete IPTV solution; Setting up of own cable distribution (underground optical fibre) network capable of digital transmission throughout Agra City and adjoining areas; Setting up own 20 branch-offices in the city including in the adjoining areas with required infrastructure for receiving digital signals and re-transmitting the same without much value addition through co-axial cables to individual customers/subscribers. Sea TV proposes to adopt latest technology; i.e., IPTV for providing TV channels to its viewers.

The book running lead manager to the Issue is Chartered Capital and Investment Limited.


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