The Hindu Business Line : Raj TV uses Rs 25.06 cr of IPO proceeds

Chennai, Aug. 1 Raj Television Network Ltd has informed the stock exchange that against the total projected utilisation of Rs 52.81 crore up to June 30, 2008, from the IPO funds, Rs 25.06 crore has been utilised towards acquisition of contents and strengthening facilities, purchase of new equipment and upgradation of existing equipment. The balance proceeds have been invested in fixed deposits with banks.

Explaining why the company did not utilise the proceeds as projected, Mr M. Raajhendhran, Managing Director of the company, said there was delay in the proposed construction of studio-cum-office complex and foreign channel tie-ups. “Once this channel tie-ups are through, we will have to invest a few crores in setting up necessary uplinking facilities,” he said.

Raj Television proposes to construct a new 75,000 sq. ft. studio-cum-office complex at Rs 25 crore at its current premises. The company has 16 grounds there, including the two grounds it recently acquired. “We are also planning to invest Rs 10-15 crore in new studio equipment for captive and hiring purposes as well,” he said. Besides, it is also planning to launch five more channels, including two in Telugu and Kannada, during this fiscal.

The company came out with an IPO in February 2007, issued 35.68 lakh shares of Rs 10 at a price of Rs 257 through the book building route.

Related Stories:
Raj TV IPO subscribed 2.96 times

More Stories on : Strategy | IPOs | Radio/TV

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
GM puts off Hummer, Cadillac launch plans

Raj TV uses Rs 25.06 cr of IPO proceeds

It’s time for Titan to grow in overseas markets

Aggressive plans for affordable 3G devices

IPL kept PVR’s audiences away from theatres in Q1

Bangalore malls ‘bouncing back to normalcy’

Cherma’s retail to expand across AP

Inflation, dearer money see slowdown in durables sales

Bumpy ride for auto companies in July