The Hindu Business Line : Pyramid Saimira plans Rs 84-cr IPO

FOCUSSING NEW AREAS: Mr V. Natarajan, Chairman, Pyramid Saimira Theatre Ltd, with Mr P.S. Saminathan, MD, at a press conference to announce the company's IPO in Mumbai on Tuesday. - Paul Noronha

Mumbai , Dec. 5

Chennai-based Pyramid Saimira Theatre Ltd (PSTL) is coming out with a public issue aggregating Rs 84.44 crore. The price band for this book built issue has been fixed between Rs 88 and Rs 100 per share of Rs 10 each.

The proceeds of the issue will part finance screen (theatre) expansion and digitalisation of theatres costing around Rs 111.19 crore. The issue opens on December 11 and closes on December 18.

About 50 per cent of the net issue shall be allotted on a proportionate basis to qualified international buyers. At least 15 per cent of the issue shall be allocated on a proportionate basis to non-institutional bidders. About 35 per cent of the issue shall be allocated to retail investors.

The issue reserves 5 per cent to be allotted on a proportionate basis to employees, subject to valid bids received at or above the issue price.

Pyramid Saimira, currently has 148 screens (all on lease). "We will have 2,000 screens at 1,550 places by 2010. The idea is to create a mega digital theatre chain across every single township in India," said Mr P.S. Saminathan, Managing Director, PSTL.

"We will tie-up with theatres and multiplexes on long lease and upgrade their infrastructure. The issue will also include the conversion of theatres into digital exhibition systems by installing digital projectors, servers, VSAT terminals and other audio-video equipment as needed," Mr Saminathan said.

Digitalisation cuts cost on film prints, reduces piracy and facilitates quality viewing. As part of its expansion into Northern India, the company has tied up with theatre-owners in over 100 neighbourhood centres across Punjab, Rajasthan and Haryana.

Keynote Corporate Services Ltd and the merchant banking division of Canara Bank are the book running lead managers to the issue.