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Raj Television Network Ltd is on the lookout for a strategic investor with the promoters open to divesting a majority stake in the company.
The Chennai-based television broadcasting company operates 13 channels in Tamil, Telugu, Kannada, Malayalam and Hindi. It offers a range of entertainment and news channels. It also owns a huge library of Tamil feature films.
According to Sudip Bandyopadhyay, MD and CEO of Destimoney Securities, which has been given the mandate for the deal, the proposal has attracted keen interest with high net worth individuals and a couple of television broadcasting companies coming forward.
M Raajhendhran, MD, Raj Television, confirmed the development, adding the proposal is to raise funds to take the company to the next level of expansion. He, however, refused to comment on the extent of dilution and the estimated value.
Raj Television, promoted by four brothers — Raajhendhran, M Rajarathinam, M Ravindran and M Raghunathan — went public in 2007, with the brothers holding a 67 per cent stake in the company.
For the quarter ended December 31, it reported a net profit of ₹5 crore on a turnover of ₹25 crore.
Viewership ratingAccording to the latest TAM Report of February 6, its flagship channel Raj TV has the fourth largest viewership rating in Tamil Nadu with gross rating points of 280 , after Sun TV (1,535 points), KTV (351) and Vijay TV (347).
Bandyopadhyay said the company’s content library is valued at a few hundred crores of rupees, and can be easily monetised.
According to experts, the valuation of the company can be at a significant premium to its market price of around ₹700 crore.
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