The Hindu Business Line : Raj TV to raise Rs 91 crore through IPO

NEW DELHI: Raj Television Network Ltd is planning to tap the capital market through an initial public offer (IPO) to raise about Rs 91 crore for part funding its expansion plans, which include setting up a movie studio and starting new channels.

"The IPO with face value of Rs 10 each will be in the price band of Rs 221-257. Post issue, promoters' stake in the company would be reduced to 72.5 per cent from the present 100 per cent,'' Raj Television Network Ltd Director, Mr M Ravindran told report ers here.

The issue, which opens for subscription on February 14 and closes on February 23, would constitute 35 lakh shares with face value of Rs 10 each or 27.5 per cent of fully diluted paid up capital of the company. The shares would be listed on BSE and NSE.

Raj Television, which runs and manages two Tamil channels -- Raj TV and Raj Digital Plus -- would launch a youth channel at an investment of Rs 10.7 crore by June this year. "The multi-lingual channel would have game-shows and contests and would target t he 14-40 age group,'' he said.

It is also coming up with a Tamil music channel, Raj Musix, at an investment of Rs 5 crore by April. The music channel would be funded entirely through internal accruals, Mr Ravindran said.

The company, which claims to have a 1.5 million household base in Tamil Nadu, said it has the rights to 70 per cent of Rajnikanth movies titles. ''We have an overall 3,000 movie titles in Tamil,'' he said. - PTI

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