The Hindu Business Line : Global Broadcast News plans Rs 105-cr IPO

ENTERING NEW SCREEN: Mr Rajdeep Sardesai (left), Editor-in-Chief, CNN IBN, and Mr Raghav Bahl, Director, Global Broadcast News Ltd, at a press conference to announce the company's IPO in Mumbai on Tuesday. - Paul Noronha

Mumbai , Jan 9

Global Broadcast News Ltd, owners and operators of the English news channel CNN-IBN, will enter the capital market with an initial public issue of equity shares aggregating Rs 105 crore.

The price band for the issue has been fixed at Rs 230 - 250 per share.

The promoters' stake in the company will stand diluted by 15 per cent post-issue.

The proceeds of the issue will be partly invested in BK Fincap Pvt Ltd, which owns and operates the Hindi news channel IBN 7, apart from repaying a loan and for general corporate purposes.

The issue will open on January 15 and close on January 18.

Of the total issue, equity shares aggregating up to Rs 5 crore will be reserved for allotment to eligible employees of the company.

The net offer to the public will be Rs 100 crore.

Of this, at least 60 per cent will be allocated on a proportionate basis to qualified institutional bidders of which 5 per cent will be reserved for mutual funds.

Non-institutional bidders would receive 10 per cent of the net issue and up to 30 per cent will be allocated to retail individual bidders on a proportionate basis.

The company has recorded a total income of Rs 25.9 core and a net loss of Rs 25.8 crore for the half-year ended September 2006.

GBN is part of the TV18 group.

ICICI Securities Ltd and Kotak Mahindra Capital Co Ltd are the book running lead managers to the issue and JM Morgan Stanley Pvt Ltd and IL&FS Investsmart Ltd are the co-book running lead managers to the issue.