The Hindu Business Line : Broadcast Initiatives IPO price band fixed at Rs 100-120

EYEING NEW WINDOW: Mr Markand Adhikari, Vice-Chairman & MD, Broadcast Initiatives Ltd, at a press conference to announce the company's IPO in Mumbai on Tuesday. - Paul Noronha

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Mumbai Feb. 6 Broadcast Initiatives Ltd, a broadcaster in the media domain, promoted by Sri Adhikari Brothers, will enter the capital market with an initial public offering (IPO) of 85.50 lakh equity shares of Rs 10 each for cash at a premium to be decided through a 100 per cent book-building process.

The price band for the issue has been fixed between Rs 100 and Rs 120 per share. The issue opens on February 9 and closes on February 14.

The company plans to use the issue proceeds for its channel, `Janmat'. It intends to deploy the net proceeds for purchase of land and construction of studio; purchase of production, post production and broadcasting equipments; prepayment of loans and general corporate purposes.

Of the total issue, 1 lakh equity shares will be reserved for the employees. A minimum of 50 per cent of the net issue to the public shall be allocated to qualified institutional buyers (QIBs); of which, 5 per cent will be reserved for mutual funds.

Further, not less than 15 per cent of the net issue to the public shall be given to non-institutional bidders and not less than 35 per cent will be available for retail individual bidders on a proportionate basis.

The net issue to the public will constitute 44.27 per cent of the fully diluted post issue paid-up capital of the company.

Allianz Securities Ltd is the book running lead manager to the issue.