Promoters plan to sell 32% stake in the company
Mumbai, Oct. 23
Kanakia Group, the promoter of theatre exhibition chain Cinemax India, is coming out with a public issue of 70 lakh equity shares to raise about Rs 150 crore.
"The entire proceeds of the IPO will go to increase our screens from 33 to 96 and acquiring properties pan India. Our strategy will be to focus on acquiring or leasing multiplexes in malls,'' said Mr Rasesh B. Kanakia, Chairman. The promoters are looking to sell about 32 per cent stake in the company.
Cinemax is scaling up its presence in two tier cities such as Panipat, Guwahati, Surat, Nagpur and Faridabad. Southern cities such as Chennai, Bangalore, Hyderabad and Kochi would form the second phase.
"Entertainment industry is growing at a good pace. People look out for add-on services such as gaming zones, shopping counters and food `n' beverages outlets while coming to see films. It takes about a crore of rupees to set up a screen,'' said Mr Kanakia.
The company is also keeping its options open to get into movie production.
"We are not planning to enter movie production immediately, but will look at it positively. We may look for tie-ups with major production houses in the country,'' he said.
The group is also planning to set up a couple of Imax theatres in Pune and Chandigarh.
"We will introduce telebooking, online booking, SMS booking and any-time ticketing services in our theatres. We believe in gaining customer satisfaction through constant innovation in our services such as offering reclining seats, massage chairs and karaoke,'' said Mr Kanakia.