Global Broadcast News Ltd (GBN), a TV18 Group company and owner of CNN-IBN and stakeholder in IBN 7, has filed its Draft Red Herring prospectus with the Securities and Exchange Board of India to enter the capital market with its initial public offering of equity shares.
The company proposes to raise up to Rs 105 crore through the issue of equity shares of Rs 10 each at a premium to be decided through the 100 per cent book-building process. The equity shares are proposed to be listed on the Bombay Stock Exchange as well as the National Stock Exchange.
The net issue to public comprises the issue of equity shares aggregating up to Rs 100 crore, and the issue of equity shares aggregating up to Rs 5 crore has been reserved for the employees. Of the net offer to the public, 60 per cent has been reserved for allotment to Qualified Institutional Buyers on a proportionate basis, 5 per cent of which will be available for allotment to mutual funds. Further, up to 10 per cent of the net offer to public is reserved for allotment to non-institutional investors and the balance of up to 30 per cent is reserved for allotment to retail investors.
Sameer Manchanda, Joint Managing Director, GBN, said, “The IPO is an important milestone in realising our larger corporate vision. It will help strengthen GBN’s position in the television news business and tap future growth opportunities.”
The book running lead managers to the issue are ICICI Securities Ltd and Kotak Mahindra Capital Company Ltd. JM Morgan Stanley Ltd and IL&FS Investsmart Ltd are the co-book running lead managers to the issue.
GBN launched its English news channel CNN-IBN in last week of December 2005. It bought into Jagran’s Channel 7 in February 2006 and took over its editorial and distribution responsibilities. The channels was recently relaunched and renamed as IBN7.