Broadcast Initiatives fixes price band at Rs 100-120

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Broadcast Initiatives, a professionally managed broadcaster in the media domain and promoted by Sri Adhikari Brothers, is entering the capital market with an initial public offering, IPO of 85,50,000 equity shares of Rs 10 each for cash at a premium to be decided through a 100% book-building process.

The price band for the issue has been fixed between Rs 100 and Rs 120 per share. The issue opens on February 9, 2007, and closes for subscription on February 14, 2007. 
 
The issue of 85,50,000 equity shares includes employee reservation of 1,00,000 equity shares of face value of Rs 10 each for cash at a premium. A minimum of 50% of the net issue to the public shall be allocated on a proportionate basis to qualified institutional buyers; including upto 5% of the QIB portion shall be available for compulsory allocation to mutual funds only; and the remainder of the QIB portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid bids being received at or above the issue price.

Further, not less than 15% of the net issue to the public shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 35% of the net issue to public shall be available for allocation on a proportionate basis to retail individual bidders, subject to valid Bids being received at or above the issue price.
 
The net issue to the public will constitute 44.27% of the fully diluted post issue paid-up capital of the company. The promoters will continue to own 55.73% of the equity shares on a fully diluted basis.

Allianz Securities is the book running lead manager. Allianz Securities, Enam Securities and Almondz Capital Markets are the syndicate members to the issue. The shares are proposed to be listed on BSE and the NSE.

The objects of the issue include: raising equity for financing the growth plans of the company. The company's 'views channel', Janmat was commercially launched from April 30, 2006 onwards. The company plans to make investments on capital expenditure aimed at upgrading the current set up. It intends to deploy the net proceeds from the issue for the purchase of land and construction of studio; purchase of production, post production and broadcasting equipments; prepayment of loans, general corporate purposes and issue-related expenses.
 
Broadcast Initiatives enjoys recognition and is ably supported by its network and programming experience. The strengths of the company include the experience and track record of the promoters in the broadcasting business. It has a qualified employee and management team, a popular team of anchors, journalists and quality employee base including renowned television personalities. Its marketing team has existing relationships with advertisers.
 
A wholly owned subsidiary of Broadcast Initiatives, Sri Adhikari Brothers Media (SABML) is in the process of launching a Marathi language channel, Mi Marathi. SABML has entered into an exclusive Ad-Sales Representation Agreement with NDTV Media for the sale of airtime on Mi Marathi channel, as per press release.