PVR Cinemas to go public

Delhi-based PVR Cinemas has filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India to enter the capital market with an initial public offering of 7,700,000 equity shares of Rs 10 each for cash at a price to be determined through the book-building process.

The Book Running Lead Managers to the issue are ICICI Securities Limited and Kotak Mahindra Capital Company Limited.

The multiplex chain plans to finance new cinema projects, expand its film distribution business, upgrade its technology and renovate its cinema theatres.

The company also plans to expand its cinema footprint and set up new cinema theatres in Mumbai, Hyderabad, Delhi, Indore, Gurgaon, Lucknow, Chennai, Ludhiana, Aurangabad and Latur.

The issue comprises of a fresh issue of 5,700,000 equity shares by the company and an offer for sale of 2,000,000 equity shares by The Western India Trustee and Executor Company Limited in its capacity as trustee of the India Advantage Fund-I, acting through its investment manager, ICICI Venture Funds Management Company Limited.

The issue comprises of a contribution from the promoters of 300,000 equity shares by Priya Exhibitors Private Limited, one of the promoters of PVR Limited, and a reservation for employees of 150,000 equity shares. Thus, the net issue to the public stands at 7,250,000 equity shares.

© 2005 agencyfaqs!