Close on the heels of completing its first year of operations, CNN-IBN has announced its maiden initial public offering. The channel plans to mop up Rs 105 crore via this IPO, which is slated to the markets before March 2007. Global Broadcast News Ltd (GBN), a TV18 Group company and owner of CNN-IBN, has filed its draft red herring prospectus with the Securities and Exchange Board of India to enter the capital market with its IPO.
The company proposes to raise Rs 105 crore through the issue of equity shares of Rs 10 each for cash at a premium to be decided through the 100 per cent book-build process. The equity shares proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.
CNN-IBN Managing Director, Sameer Manchanda, said, “We will be hitting the markets early next year with a Rs 105 crore IPO, of which Rs 5 crore will be reserved for our employees. That means the offer for public will be Rs 100 crore, and we intend to use the proceeds for our growth plans.”
He further explained that the with the proposed issue, GBN would join other listed media companies in the bourses like NDTV, TV Today, TV18, Sun TV, Zee Television and ETC Network.
CNN-IBN will use Rs 40 crore from the IPO proceeds for the acquisition of IBN-7, the Hindi news channel of the group that earlier belonged to the Jagaran Group. At present, TV-18 and promoters hold 67 per cent in the company, while Manchanda, Editor-In-Chief Rajdeep Sardesai and others together own 23 per cent stake. IL&FS holds the remaining stake.
Manchanda further said that along with new ideas, new thoughts and new programmes, the channel would be constantly looking at ways to take the citizen journalism concept to another level.
CNN-IBN completes one year, bets big on citizen journalism and interactive element