UTV Software Communications Ltd. (UTV), an Integrated Media and Entertainment Company, has fixed the price band at Rs 115-130 for its public issue of 6,999,950 equity shares of Rs.10 each through a 100 per cent book building process to part finance its expansion plans.
The size of the issue will be Rs 910 million at the upper end of the price band and Rs. 805 million at the lower end of the band. The book running lead manager to the issue is Enam Financial Consultants Pvt. Ltd. and co-book running lead manager is IL&FS Investsmart Ltd. The issue is scheduled to be opened on February 21, 2005 and close on February 25, 2005.
The proceeds from the IPO will be used for enhancement of production facility and office infrastructure, investment in the Kids Channel (Hungama TV) project, funding of SFX & post-production expansion, investment in movie production and distribution initiatives and general corporate purposes. The roadshows for the company will be kicked off from Mumbai on February 14, followed by Delhi and Ahmedabad.
Since its inception in 1990 the company has focused on being an integrated entertainment company with interest in television content production and airtime sales, movie production, distribution, dubbing, ad film making and post-production services. Speaking about the new order in fiscal 2005, Rohinton 'Ronnie' Screwvala, CEO, UTV Group, says, "At present, 35 per cent of our group turnover comes from the film business as against 25 per cent last year. The television business has a share of 45 per cent vis-a-vis 65 per cent last fiscal."