The Hindu Business Line : Raj TV IPO opens on Feb 14

EYEING NEW SCREEN: Mr M. Raajhendhran, MD, Raj Television Network Ltd at a press conference to announce the company's IPO in Mumbai on Wednesday. - Paul Noronha

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Mumbai Feb. 7 The Chennai-based Raj Television Network Ltd will enter the capital market with an initial public offering of 35,68,250 equity shares with a face value of Rs 10 each through a book building process.

The company has fixed the IPO price band between Rs 221-257. Of the total issue, 3,24,384 equity shares have been set aside for employees and the net offer to the public is 32,43,866 equity shares. The issue opens on February 14 and closes on February 23.

The proceeds of the issue will go to strengthen production facilities, enhance content, launch a new youth-centric television channel, and enhance its overseas broadcasting among others, said Mr B. Sathya Prakash, senior vice-president, Raj Television.

Qualified institutional bidders will receive 50 per cent of the net offer, of which five per cent will be reserved for mutual funds, 15 per cent will be allocated to non institutional bidders and the retail bidders will get 35 per cent of the net offer on a proportionate basis.

The company recorded a net profit of Rs 9.86 crore for the nine-month period ended December 31, 2006 and a total income of Rs 29.5 crore.

The book running lead manager to the issue is Vivro Financial Services Pvt Ltd and the co- manager is Canara Bank.