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NDTV public offer hits market on April 21, plans to mop up Rs 109 crore

20-April-2004
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NDTV public offer hits market on April 21, plans to mop up Rs 109 crore

Close on the heels of electronic media major, Aaj Tak, New Delhi Television’s Initial Public Offer hits the capital market on April 21 and closes on April 28. The company intends to raise Rs 109 crore by offering shares of face value Rs 4 in a price band of Rs 63-70.

When exchange4media.com contacted Raj Nayak, CEO, NDTV Media, he observed that media houses in India had come of an age and the IPOs hitting the market would make them more accountable. “Aaj Tak, CNBC-TV18 set the trend and now we have also followed the suite,” he said.

The IPO consists of two parts: fresh equity of shares and an offer for sale. The offer size of Rs 109 crore comprises a net offer to public of Rs 100 crore and a reservation for employees, worth Rs 9 crore. The IPO, through 100 per cent book building method, will see the promoters issue fresh equity shares and also off load some existing equity.

At least 60 per cent of the issue shall be allocated on discretionary basis to qualified institutional buyers and not less than 15 per cent for non-institutional buyers and remaining 25 per cent for retail bidders.

Shareholders offering shares in the offer for sale are GS television holdings, GS Media Holdings, GS Communications Holdings, Saffron Fund Inc, JF Fund, JP Morgan Fleming India Investment Company (Mauritius) and SBI Capital Markets.

Addressing media persons here last evening, Dr Prannoy Roy, Chairman and Director, NDTV, said: “Proceeds from the fresh issue will be used for working capital requirements, repayment of loans and general corporate purposes.”

With its two channels, NDTV 24×7 and NDTV India, the news broadcaster has been reaching out to approximately 4.65 crore viewers across the country, says the latest TAM Viewership data. The group has wooed 249 advertisers and 402 brands over the nine-month period ended December 31, 2003.

NDTV, however, recorded total revenues and profits of Rs 103 crore and Rs 20.6 crore respectively in FY03, based on consolidated financial statements prepared in accordance with Indian GAAP. But, for the ninth month period ended December 2003, the company earned Rs 45.9 crore of revenue and incurred a loss of Rs 47.5 crore.

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