Aroon Purie promoted TV Today Network’s Initial Public Offering (IPO) has a received good response from domestic investors, which consisted of Qualified Institutional Investors, high net worth individuals and the retail public. High net worth Individuals investment in the issue has oversubscribed 85 times and that of retail investors has been over 24 times.
The issue, that opened on December 18 and concluded on December 27, 2003, over subscribed 36.26 times and mopped up Rs 4900 crore at a price of Rs 95 per share as a result of over subscriptions. This includes the bids at the cut-off price. The company however aims to raise only Rs 137 to Rs 150 crore for its expansion plans.
According to market sources, the TVTN shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) on January 16, 2004, according to market sources.
At issue opening, TVTN had announced a price band of Rs. 80-95 (face value of Rs. 5 each) for its maiden offering of 14.5 lakh shares through the book-building route. The issue constituted 25 per cent of the fully diluted post issue paid-up capital of the Company.
When asked at the press conference why he decided to take his company public at this point in time, Aroon Purie, Chairman and Managing Director, TV Today Network replied that TV Today Network was a capital intensive company and in a short span of less than three years their flagship brand ‘Aaj Tak’ had emerged as a leader and a trend-setter. He also said that ‘Headlines Today’ was also set to create waves in the English news genre. The fresh funds that the company raises would be utilized towards execution of a major up gradation and expansion plan and secondly to reinforce, build and maintain their leadership position.
The issue has been lead managed by JM Morgan Stanley Pvt. Ltd., while Kotak Mahindra Capital Company Limited and ICICI Securities Limited were the co-lead managers to the issue.