Chennai, Oct. 23
Raj Television Network Ltd plans to enter the capital market to raise funds to expand its operations, including launching a new television channel, and strengthen its facilities, according to a press release from Raj TV.
It has filed a draft red herring prospectus with the Securities and Exchange Board of India to issue 35,68,250 shares of Rs 10 each at a price to be determined through a book-building process. The issue includes a fresh issue of 22,70,700 shares and an offer for sale of 12,97,550 shares by the existing shareholders.
The issue is to fund a new television channel, extend broadcasting to international markets, enhance content and content acquisition, produce short films and telefilms, acquire and export films in international markets, construct a new studio and strengthen existing facilities, the release said.
The net issue to the public consists of up to 32,43,866 shares and a reservation of up to 3,24,384 shares for eligible employees of the company. The issue constitutes 27.50 per cent of the fully diluted post-issue paid-up capital of the company.