Published : March 17, 2005
UTV Software Communications, which went public last month with an issue of 6.99 million equity shares, will list on the Bombay Stock Exchange and National Stock Exchange today.
The company had closed its IPO on February 25 with a total demand that exceeded the issue size by 26.12 times.
The company received bids for about 185 million equity shares, with funds generated in the region of Rs 91 crore.
UTV's IPO had comprised a fresh issue of 4.5-million equity shares (of the face value of Rs 10), while the balance of 2.49-million equity shares was an offer for sale by stakeholder CDPQ. Of this, 0.34 million equity shares were reserved for employees, with the net issue to the public being 6.65-million equity shares. This issue constituted 34.11 per cent of the fully diluted post-issue paid-up capital of the company.
The proceeds of the IPO will be utilised to fund Hungama TV (kids' channel from UTV) as well as the company's growing movie business to the extent of Rs 10 crore and Rs 30 crore, respectively. A portion of the funds will also be used in the upgradation of post-production, office and studio facilities.
Despite the excitement within the company to the overwhelming response to its IPO, the media house was still at a state of shock over the exit of a core team-member at Hungama, namely, COO Purnendu Bose, who put in his papers recently. He is slated to join SaharaOne on April 1, replacing Karuna Samtani, who is expected to take up allied responsibilities at Sahara.
Day-to-day operations of Hungama TV are currently being overseen by Ronnie Screwvala, CEO, UTV. The channel is no.3 in the kids' space on the back of its 24-hour Hindi-language programming. Incidentally, it is the only indigenous channel in a space occupied by "foreign players".
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