Broadcast Initiatives, which entered the capital market with an initial public offering (IPO) of 85,50,000 equity shares of Rs 10 each, has been oversubscribed 2.76 times, as per information on the National Stock Exchange. The price band for the issue was between Rs 100 and Rs 120 per share.
Markand Adhikari, Vice-Chairman and MD, Broadcast Initiatives, said, “Even with the market being weak on that particular day of the issue, we got a tremendous response to our issue.”
The Issue of 85,50,000 equity shares included employee reservation of 1,00,000 equity shares of face value of Rs 10 each for cash at a premium. The Qualified Institutional Buyers (QIBs) portion was oversubscribed 1.61 times, while Non-Institutional Bidders (NIBs) and Retail Individual Bidders (RIBs) was oversubscribed 6.45 and 2.89 times respectively, taking the net total to 2.76 times.
The Net Issue to the public constitutes 44.27 per cent of the fully diluted post issue paid-up capital of the Company and the promoters will continue to own 55.73 per cent of the equity shares on a fully diluted basis.
The objects of the issue included raising equity for financing the growth plans of the company, and also plans to make investments on capital expenditure aimed at upgrading the current set up. It intends to deploy the net proceeds from the issue for the purchase of land and construction of studio; purchase of production, post production and broadcasting equipments; prepayment of loans, general corporate purposes and issue-related expenses.
A wholly owned subsidiary of Broadcast Initiatives, Sri Adhikari Brothers Media (SABML) is in the process of launching a Marathi language channel, Mi Marathi. Allianz Securities is the book running lead manager while Enam Securities and Almondz Capital Markets along with Allianz were the syndicate members to the issue. The shares are listed on BSE and the NSE.