The Hindu Business Line : Cinemax plans to raise Rs 120-138 cr thru IPO

NEW PLANS: Mr Resesh B. Kanakia (left), Chairman, Cinemax India Ltd, with Mr Mayur Parekh, GM Accounts & Finance, addressing a press conference to announce the company's IPO in Mumbai on Wednesday. - Paul Noronha

Mumbai , Jan. 10

Cinemax India Ltd is entering the capital market with an initial public offering of 89.2 lakh equity shares in the price band fixed at Rs 135-155 per share. The issue opens on January 18 and closes on January 24.

The offer comprises a fresh issue of 70 lakh shares and offerings from current shareholders totalling 19.2 lakh shares. Of this, at least 44.3 lakh shares will be allocated to qualified institutional buyers on a proportionate basis, with five per cent reserved for mutual funds. Non-institutional buyers will receive 13.29 lakh shares with 31.01 lakh shares available to retail investors, both on a proportionate basis. Sixty thousand shares have been reserved for subscription by employees. The net issue constitutes 31.86 per cent of the fully diluted equity capital of Cinemax.

The issue is expected to raise between Rs 120 crore and Rs 138 crore to build 19 theatres, totalling about 15,864 seats, around the country. Cinemax currently operates 10 properties with 33 screens and 9,220 seats, the majority of which are in Mumbai.

The company owns eight of the properties and leases the other two.

Enam Financial Consultants Private Ltd, JM Morgan Stanley Private Ltd, Edelweiss Capital Ltd and Ambit Corporate Finance Private Ltd are the book running lead managers to the issue.