Broadcast Initiatives Ltd, promoter of Janmat channel, has filed a draft red-herring prospectus with the Securities and Exchange Board of India SEBI to go public. The company is also expecting to launch its Marathi channel, Mi Marathi, by June-end through its wholly owned subsidiary company Sri Adhikari Brothers Media Ltd (SABML). SABML became a wholly owned subsidiary of the company on March 2, 2006.
The company’s net worth has been evaluated at Rs 169 crore by March 31, 2006. It will dilute 44.27 per cent stake, which is currently owned by the Adhikari Brothers. The company proposes to issue 8,550,000 equity shares of Rs 10 each at a premium through the book-building process. Allianz Securities has been appointed as the lead manager to the issue.
“The proceedings from the issue will be utilised to upgrade facilities for Janmat channel. Part of it will also be invested towards the launch of the Marathi channel,” said Markand Adhikari, Vice-Chairman and MD, Broadcast Initiatives Ltd.
Speaking further on the launch of the Marathi channel, Adhikari said, “We are ready with all the logistics and are expecting some statutory clearances by the end of this month to launch the channel.” At present, DD Sahyadri, Zee Marathi and ETV Marathi are the channels operating in the segment.
The company was originally incorporated in 2004 in the name of SAB Samachar Ltd. The name of the company was subsequently changed to Sri Adhikari Brothers News and Television Network Ltd with effect from July 8, 2005. The name was further changed to Broadcast Initiatives Ltd from May 18, 2006.
“Since the test launch from November, 2005, Janmat has achieved a growth of around 104 per cent in GRPs in C&S SEC A 25+ and growth of 103 per cent in reach in Hindi speaking markets in C&S SEC ABC 25+,” the company said in the draft red-herring prospectus.