Sun TV files for IPO

MUMBAI: The Chennai-headquartered regional television broadcaster Sun TV Ltd has filed the red herring prospectus with Securities Exchange Board of India (SEBI) for its proposed Initial Public Offering (IPO).

The company intends to come out with a fresh equity issue of 68,89,000 equity shares of Rs 10 each for cash, to be made entirely through the book building route.

The issue will constitute 10 per cent of the fully diluted post issue paid-up capital of the company. Following the issue, the shareholding of Sun TV Ltd principal promoter Kalanithi Maran will reduce to 89.99 per cent from 99.99 per cent (61,999,969 shares).

The other shareholders -- three individuals Kavery Maran, Mallika Maran, K Shanumugam and three promoter group companies Kal Comm Pvt Ltd, Kumgumam Publications Pvt Ltd and Kal Publications Pvt Ltd -- together hold less than 200 shares presently. The stake held in the company by M K Dayalu, wife of M Karunanidhi, was acquired by Maran for a total consideration of Rs 364.8 million at Rs 3,173 per share in October 2005.

The company has mandated Kotak Mahindra Capital Company and DSP Merril Lynch for the issue, which is slated to hit the market sometime towards the end of March or early April 2006.

The prospectus states that the proceeds of the issue will be used to beef up its subsidiaries, launch more television channels and construct its own corporate office. Investments will also be made in setting up studio facilities and up-linking infrastructure, purchasing new equipment and upgrading the existing ones.

As per the prospectus, an investment of Rs 1.14 billion would require carrying out the TV channel launches; the new office and studio facilities would need Rs 623 million and the new equipment/up-gradation would cost Rs 312.6 million.

Regarding the investments planned on its radio initiatives, Sun TV estimates a total expenditure of Rs 1.83 billion towards acquisition of broadcast equipment and setting up of 46 local offices and radio studios.

The company also anticipates a pre-operating expenditure of Rs 50 crore towards obtaining frequency allocation, Standing Advisory Committee on Radio Frequency Allocation (SACFA) clearance, overheads prior to start of commercial operations and launch expenses.

According to the prospectus, Sun TV Ltd recorded a net profit of Rs 779.2 million for FY05 (Rs 772.9 million in FY04) on a total income of Rs 3 billion (Rs 2.7 billion in FY04). For the first half of FY06, the company's net profit was Rs 625.5 million on a total income of Rs 1.6 billion. The company's net worth as of 30 September 2005 was Rs 4.7 billion; its outstanding loans were Rs 105 million.

"From fiscal 2001 to fiscal 2005, our total income grew at a compound annual growth rate of 19.5 per cent and our net profit after tax grew at a compound annual growth rate of 17.1 per cent. Our net profit after tax as a percentage of total income has averaged 27.6 per cent over the past five fiscal years," states the prospectus.

"In November and December 2005, we paid dividends of Rs 1,850 million in the aggregate and in December 2005 we made a bonus issue of Rs 600 million, and our reserves and surplus were accordingly reduced. We believe we are in a stable financial position to take advantage of future opportunities, including acquisitions, to expand our business," the prospectus adds.

The red herring prospectus says that in Tamil Nadu, the combined audience share of all Sun channels is 60 per cent compared to the 5 per cent of its closest competitor for the year ended 31 March.

Sun TV Ltd has also expressed its intention to convert all its channels pay. "All our Tamil and Malayalam channels are available as FTAs to cable operators throughout India, except KTV, Sun News and Sun Music, which are available as pay channels. We intend to make all our channels pay channels in the near future," the prospectus states.

Sun TV Ltd is part of the Sun Network, which runs 14 TV channels, four FM Radio stations, two daily newspapers and four magazines. Sun TV Ltd comprises four Tamil channels -- Sun TV, Sun Music, KTV and Sun News -- and two Malayalam channels -- Surya TV and Kiran TV.

Sun TV has also said that it will utilise the mobile telephone and broadband technologies for content distribution. "As part of our growth strategy, we may broaden our media presence through other platforms including broadband, mobile and DTH," states the document.

The company is presently in the process of launching its DTH services.

Latest Reads
Pro Wrestling League rallies on North India viewership

MUMBAI: The third edition of the Pro Wrestling League (PWL) proved to be a hit among the younger viewers while attracting audiences of all age groups. Moreover, 77 per cent of the viewership came from North India for the season.

Television TV Channels Sports
Catch the Superr Heropanti of bandbudh aur budbak only on Discovery Kids

Discovery Kids, the leading animation channel from Discovery Communications India, has launched its new series Bandbudh aur Budbak from 12th February. The show follows the fun school life adventures of two best friends, Badrinath and Buddhadeb who often land in trouble because of their antics but...

Television TV Channels Kids
Debates continue to reap rewards for Eng news channels on prime time

Prime-time shows on Indian English news channels have struggled to budge from their reliance on the debate format. In spite of access to new technologies, the content of the programming during the slot has largely remained the same. Even the allure of virtual reality (VR) and the latest production...

Television TV Channels News Broadcasting
Celebrate the month of love with Dil Beats - a show curated by 'Sanam' on MTV Beats

February is shaping up to be an exciting month for the viewers of MTV Beats – the 24x7 Hindi Music TV channel with a new show line up of specially curated concepts, will be all about love and romance. Bringing alive its promise of providing an intense musical indulgence, MTV Beats brings the...

Television TV Channels Music and Youth
Renault MTV Roadies Xtreme powered by OPPO co-powered by ID Shoes & Durex ups its ante with marquee sponsors for its milestone season

Having garnered an overwhelming response and appreciation year-on-year for fifteen long years, cult reality show, Roadies is back with its all new season, Roadies Xtreme.

Television TV Channels Music and Youth
Sun TV, Star Maa only non-Hindi players in across genre list

BENGALURU: The Sun TV Network’s flagship Tamil GEC Sun TV and Star India’s flagship Telugu GEC Star Maa were the only non-Hindi channels among Broadcast Audience Research Council's (BARC) weekly list of top 10 channels across genre all India (U+R): 2+ Individuals for week 6 of 2018 (Saturday, 3...

Television TV Channels Viewership
Higher taxes fail to dampen demand for Indian soaps in Sri Lanka

MUMBAI: In spite of stringent levies on imported content, the popularity of Indian shows is seeing an upward trend in the Sri Lankan market. Indian soaps have resonated well with audiences in the island nation, courtesy the flashier nature of the content in contrast to the rural and simple...

Television TV Channels GECs
BTVI’s Financial Planner engages with audience on personal wealth creation

BTVI, India’s premiere English business news channel hosted the on-ground event ‘Financial Planner’ in Pune and Mumbai. The channel has introduced this on-ground interactive opportunity for its viewers where a financial expert helps them build a solid financial future.

Television TV Channels News Broadcasting
Ex-Times Now Anchor Shaheen Dawood joins iRealities as 'Lead Content Producer'

Former Times Now entertainment anchor Shaheen Dawood is now heading a large animation team at iRealities, one of the primeval and leading content production and marketing solutions company in Mumbai.

Television TV Channels News Broadcasting

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories