The promoters of B4U Television Network have further deferred their plans for an initial public offering (IPO) till the end of this year. According to sources, B4U may rope in fresh partners if the situation forces them to defer the IPO plans even further.
The company was initially scheduled to go public in the last quarter of 2001 but the event was pushed back because of the poor state of the stock market and weak public sentiment after the terrorist attack on the World Trade Center. It was then decided that the IPO would be floated between July and September this year.
According to company sources, the size of the IPO is to be around Rs 100 crore and a premium is likely to be charged. A consultant and a merchant banker have already been appointed.
B4U Television Networks owns two channels, namely B4U Music and B4U Movies. This company is a wholly-owned subsidiary of the Mauritius-based company, B4U International Holdings. It is owned equally by the steel magnate, Mr Lakshmi N Mittal, Mr Gokul Binani of Binani Steel and Mr Kishore Lulla, owner of Eros International.
Of the two channels, B4U Movies will become a pay channel within the next two months. B4U Music will continue to operate as a free-to-air channel. Incidentally, both these channels had gone digital from the beginning.
Source: Business Line