Tamil satellite channel Raj Television Network Ltd has filed documents with market regulator Securities and Exchange Board of India (SEBI) for its IPO. The channel would be offering 3.568 million shares, Senior Vice-president, Raj TV, Sathya Prakash, said. Vivro Financial Services is the sole book running lead manager to the issue.
“We are planning to expand the business through the issuer by acquiring content, launching a new television channel and building a new studio. We also want to strengthen our content and plan to foray into telefilm production,” Prakash further said.
Raveendran, Director, Raj Television Network, said, “In order to address the increasing demand for game shows and lack of good television production space, Raj TV is setting up a 9,000 sq ft studio in Chennai. Work for the same is underway. In the first phase, Raj TV will invest Rs 7.5 crore for the studio as well as a library (both digital and manual).
Raveendran further said that several studios in Chennai were being converted into either hotels or other business establishments and the need of the hour was a more compact air-conditioned studio with gallery seats for game shows. With this facility, the company would be able to reduce production cost at least by 40 per cent, he claimed.
He added, “Raj TV would also produce content for Oriya, Kannada and other south Indian language channels and discussions in this regard are already underway.”
The channel will also be upgrading its technology with equipment such as a digital play out server and digital archiving system for archiving and digitising its large content assets.