The Hindu Business Line : Entertainment Network plans IPO thru book-building route

IN the first instance of a company from the Times of India stable going public, the price band for the IPO of Entertainment Network (India) Ltd (ENIL) has been fixed at Rs 144 to Rs 162.

Following ENIL's IPO, the equity holding of the promoter, Bennett, Coleman & Co, would reduce from 98.7 per cent to 73.2 per cent. Companies in the new media space would be the ones seeking financial or strategic investors, or going public, Mr Vineet Jain, Managing Director, Bennett, Coleman & Co, said on the sidelines of a press briefing today. He was replying to a question on the selection criteria for companies going public at Bennett, Coleman & Co.

ENIL, which operates a number of FM radio stations under the brand `Radio Mirchi,' was offering 12,000,000 equity shares of Rs 10 each for cash at a premium to be decided through the book building process. A further 12,00,000 equity shares had been earmarked as green shoe option.

The issue of 12,000,000 shares consisted of an employee reservation of 200,000 shares and a net issue to public of 11,800,000 shares. Of the net issue to public, 50 per cent had been allocated for qualified institutional buyers, 15 per cent for non-institutional investors and the balance 35 per cent for retail investors with allotment for all categories on a proportionate basis.

The issue will open on January 23 and close on January 27.

The fresh issue of shares would constitute 25.88 per cent of the fully diluted post-issue paid up equity capital of the company. If the green shoe option is exercised that would go up to 27.75 per cent.