Entertainment and music channel company, B4U Multimedia International, is raising around Rs 75 crore through a `selective’ private placement of equity shares. The company is issuing shares at Rs 400 each which includes a premium of Rs 390 per share.
The company is opting for the private placement route since the market conditions are not too conducive for an initial public offer. The company said that about 18.75 lakh shares are being offered as part of the private placement. It plans to place the shares selectively with only two to three institutions through one on one meetings.
ICICI Securities is handling the placement. The company has already started marketing the issue. The company had earlier planned an IPO of about Rs 250 crore which was scheduled to hit the markets in November. The IPO has been rescheduled for early next year, either in January-end or around April-May.
The money raised from the private placement will be utilised for film financing and expenses incurred in the course of running the channels. In the absence of an IPO, the company has instead opted for a debt structure, in addition to the private placement, which is expected to tide over the forthcoming months.
Several public issues including some media sector companies, have faced trying times while garnering subscriptions from the public in recent months.