UTV Software Communications (UTV) is soon to enter the capital market with a public issue of 5,999,950 equity shares of Rs 10 each through a 100 percent book building process.
UTV, founded and promoted by Rohinton (Ronnie) Screwvala who is also the CEO of the Company, has over the years evolved into an integrated media and entertainment company with business interests in various segments of the entertainment sector. The areas that the organisation operates in include television content production and airtime sales, movie production and distribution, dubbing and ad films.
The group has delivered content or provided services to media companies in India and internationally including the likes of Walt Disney, Time Warner, STAR, Zee and Sony. It has successfully co-produced or distributed a number of Hindi movies including Lagaan, Mission Kashmir, Chalte Chalte and the recently released Lakshya.
UTV has also produced well-known television serials in India including Shanti, Shararat and Shaka Laka Boom Boom. For the 10-month period ending January 2004, the Company posted revenues of Rs 87.10 crore and an after-tax profit figure of Rs 8.52 crore.
UTV public issue comprises of a fresh issue of 3,000,000 equity shares and an offer for sale of 2,999,950 equity shares of Rs 10 each. This includes a reservation of 299,950 equity shares for employees on a competitive basis. The net issue to public of 5,700,000 equity shares would constitute 31.68% of the fully diluted post issue paid-up capital of the company.
The issue is being made through 100 per cent book building process wherein up to 50 per cent of the net issue to public shall be allocated to qualified institutional buyers on a discretionary basis, not less than 25 per cent of the net issue to public would be allocated to non-institutional investors and not less than 25 per cent of the net issue to the public would be allocated to retail individual investors on a proportionate basis, subject to valid bids at or above the issue price.
Proceeds from the IPO will be used for enhancement of production facility and office infrastructure, investment in Hungama TV, funding of SFX and post-production expansion, working capital requirements for movie distribution initiatives and general corporate purposes.
The book running lead manager to the issue is Enam Financial Consultants and co-book running lead manager is IL&FS Investsmart. The Registrar to the issue is Karvy Computershare. The equity shares are proposed to be listed on the Mumbai Stock Exchange and the National Stock Exchange.