TV Today to raise Rs 1.5 billion from IPO in Dec

NEW DELHI: The Aroon Purie-controlled TV Today Network Ltd., which manages the affairs of Hindi news channel Aaj Tak and its English sibling, Headlines Today, is looking at raising approximately Rs 1500 million from the market through its initial public offer (IPO).

According to capital market sources, the TV Today Network scrip is likely to make its debut on the stock markets during the third week of December, which is to say, between 15 to 22 December.

A final decision on the date would be taken after obtaining the green signal from the Foreign Investment Promotion Board (FIPB), slated to discuss the change in the TVTN shareholding pattern issue on 5 December, and the Indian market regulator, Securities Exchange Board of India (SEBI).

Besides the promoters, post-IPO, the other investors' holdings too would undergo a change, which have to be communicated to the FIPB and then to the Registrar of Companies.

GE Capital, which holds 7.5 per cent equity stake in TVTN at present, would see its holding go down to 6.2 per cent after the IPO. Similarly, ICICI's shareholding would go down to 8.3 per cent from 10 per cent, Ankit International's to 0.7 per cent from 1.7 per cent and Bharti Systel's to 4.14 per cent from 10 per cent.

In the run-up to the IPO in the past, TVTN has said that it would use the money raised from the capital market for expansion purposes as also in launching some niche TV channels.

The public issue is of 14,500,000 equity shares comprising fresh issue of 10,000,000 equity shares of Rs 5 each at a price that has not yet been decided yet for cash and offer for sale of 4, 500,000 equity shares of Rs 5 each at a price yet to be announced.

The issue would constitute 25 per cent of the fully diluted post issue paid-up capital of the company and is being made through 100 per cent book building process wherein up to 50 per cent of the issue shall be allocated to institutional buyers on a discretionary basis, 25 per cent would be allocated to non-institutional investors and 25 per cent would be allocated to retail investors.

The book running lead manager to the issue is JM Morgan Stanley Pvt. Ltd.

As part of its business strategy, TVTN in its draft prospectus has said that it is well positioned to expand in the fast growing news broadcasting industry that is well positioned to achieve further growth as a result of increasing penetration, viewer preference to continuously stay informed and the growing number of advertisers in the news broadcasting genre.

The objective to further consolidate the leadership position in the news broadcasting genre would be done through the following business strategies, according to the draft prospectus:

* Increase viewership by upgrading our studios and bureaus, investing in state-of-the-art technology and software, creatively innovate to differentiate ourselves from competition to increase viewer loyalty, launching niche channels and distributing our news channels to Indians abroad;

* Capture an increasing share of advertising revenue potential by introducing innovations and incentives in our annual rate card, focus on offering sponsorships of our programs, offering differentiated programming mix at the weekends and expanding time bands and increasing inventory utilization;

* Significantly increase the inventory utilization on Headlines Today;

* Charge subscription revenue, when appropriate; and

* Managing growth while optimizing cost.

TVTN has also stated in the draft prospectus that the advertisement revenues increased by 112 per cent to Rs 1081.83 million in the financial year 2003 from Rs 510.23 million in the financial year 2002. This increase in revenue was primarily due to increase in advance orders of Rs 122.6 million in the first quarter of the financial year 2002 to Rs 905.1, amongst other factors.

Other revenues increased significantly to Rs 8.92 million in the financial year 2003 from Rs 0.39 million in the financial year 2002. This was primarily on account of increase in interest on deposits, due to surplus cash available with us during the financial year 2003 in comparing to financial year 2002.

However, the production cost in financial year 2003 also increased by approximately 20 per cent to Rs 97.38 million in financial year 2003 from Rs 80.94 million in the financial year 2002. Production cost as a percentage of total revenue decreased to approximately 8.9 per cent in the financial year 2003 from approximately 15.7 per cent in the financial year 2002. The increase in production cost was primarily due to increase in uplinking charges and other production expenses.

Latest Reads
Amazon most advertised brand in BARC week 41

The Broadcast Audience Research Council (BARC) India has released its data for last week’s top advertisers and brands between 6-12 October 2018. The data is a reflection of top 10 advertiser and brands across genre on Indian television (U+R) : 2+ Individuals.

Television TV Channels Viewership
No changes in Bhojpuri, Kannada, Marathi segments in BARC week 41

In the Bengali space, Jalsha Movies and Colors Bangla swapped their third and fourth positions in BARC data week 41. No changes were observed in the Bhojpuri, Kannada and Marathi segments. Moreover, Gemini TV and Zee Telugu swapped their second and third positions in the Telugu sector. Flowers TV...

Television TV Channels Viewership
Anil Ambani’s Reliance sues NDTV for Rs 10,000 cr for Rafale coverage

NDTV has been sued for Rs 10,000 crore by Anil Ambani's Reliance Group in an Ahmedabad court for its reportage on the Rafale fighter jet deal. The lawsuit is filed against NDTV's weekly show, Truth vs Hype, which aired on 29 September.

Television TV Channels News Broadcasting
Republic TV leads English news genre in BARC week 41

Republic TV continued to lead the English news genre as per All India BARC data week 41. No changes were noticed this week in the English business news genre. Aaj Tak maintained its lead across every Hindi news genre for yet another week. Hindi news urban genre remained unchanged. Zee News dropped...

Television TV Channels Viewership
Star Utsav bags leadership in GEC (U+R) in BARC week 41

Star Utsav and Zee Anmol swapped their first and second positions in the Hindi (U+R) genre in Broadcast Audience Research Council (BARC) data for week 41 of 2018. Star Plus and Big Magic exchanged their eighth and ninth positions in the rural market. Star Bharat and Sony Sab swapped their fifth and...

Television TV Channels Viewership
Sony Pictures Networks India (SPN) extends exclusive television and digital rights partnership with ABB FIA Formula E championship

Sony Pictures Network India (SPN) will continue to broadcast each round of the ABB FIA Formula E Championship for a further two seasons across the Indian sub-continent - including India, Pakistan, Sri Lanka and Bangladesh.

Television TV Channels Sports
James Gough’s innovative idea will be incubated with the intent to prototype it at Formula 1®’s Media & Technology Centre

Formula 1® Managing Director of Motorsports, Ross Brawn, and Mercedes-AMG Petronas Motorsport Driver, Lewis Hamilton, today crowned James Gough the winner of this year’s USD $50,000 F1® Innovation Prize at the FORMULA 1 PIRELLI 2018 UNITED STATES GRAND PRIX in Austin.

Television TV Channels Sports
FLIX FIRST SCREENING: &flix makes October spookier with the multi-city theatrical premiere of Goosebumps 2: Haunted Halloween

&flix, the all-new destination for the most-awaited Hollywood blockbusters, brings the much-anticipated sequel Goosebumps 2: Haunted Halloween on Thursday, October 25

Television TV Channels English Entertainment
BIG Ganga Goes All Out to Delight Its Audience This Festive Season, Launches Engrossing Range of Shows

With the festive season right around the corner, BIG Ganga, the number one Bhojpuri channel in the Hindi heartland

Television TV Channels GECs

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories