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NT Bureau
Chennai, Feb 14:

        With the agenda to climb up the ladder further in their pursuit to excel in the television medium, the Chennai-based Raj Television Network Limited, a regional broadcaster and media company is entering the capital market today.

        The company is offering 35 lakh equity shares with a face value of Rs 10 for cash at a premium to be decided through 100 per cent book- building process. And the issue closes on 23 February.

        Speaking to mediapersons, B Sathyaprakash, senior vice president, corporate planning and strategy said, 'of the total 35,68,250 equity shares, the employees is being apportioned 3,24,384 equity shares and the net offer to the public is 32,43,866 equity shares.

        About 50 per cent of the net offer is being issued to the public on proportionate basis to Qualified Institutional Buyers, which includes 5 per cent for mutual funds.'

        He said that not less than 15 per cent of the net offer will be available for allocation on a proportionate basis to non institutional bidders and not less than 35 per cent to the public shall be available for allocation on a proportionate basis to retail bidders. On completion of the issue, the promoter and promoters group will own 72.50 per cent of the post issue equity share capital.

        Detailing about the proposals of the company in utilising the raised capital, he said that it has been planned to open a new studio with the state-of-the-art infrastructure at an investment of Rs 7.15 crore. And it would be operational by December end. Targeting the youth, the company has proposed to launch an entertainment channel by July at an estimated cost of Rs 10.68 crore.

        Shedding light on the objectives of the public issue, M Raajhendhran, managing director, Raj Television Network Limited said that their prime idea is to utilise the amount raise for strengthening their production facilities besides enhancing the content acquisition, broadcasting existing channels in the international markets, producing short films and telefilms. And their focus would to acquire and export films in the international market.

        On the company's progress report, he said it had posted a total income of Rs 32 crore as on March 2006 while comparing to Rs 30 crore for the financial year ended 31 March 2005. The total income is Rs 30 crore for the year ended 31 December 2006. The net profit for fiscal 2006 was Rs 3.81crore as compared to Rs 3 crore for fiscal 2005. The net profit for the period ended 31 December 2006 is calculated to be Rs 10 crore.

        It may be noted that Raj TV Network was launched wayback in 1994 by its chairm and and managing director M Raajhendran along with his brothers. And it earned the credit of being the first broadcasters to convert analog transmission into digital. Siginificantly, the network's strength has been its large content base addressing every member of the family thereby making it a people's channel. Currently, it beams two channels—Raj TV and Raj Digital Plus.

        The book running lead managers to the issue are Vivro Financial Services Ltd while co-manager is Canara Bank.