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TV 18 IPO & OTHER
DETAILS
TV software company, TV-18, has announced
that it is entering the primary market with a public
issue to raise Rs 530 million next month to fund its
expansion plans.
The company is offering for subscription
2.93 million equity shares of Rs 10 each for cash
at a premium of Rs 170 per share.
"The funds raised from the issue will
be used to repay high cost debt, investment in infrastructure
in the joint venture company, CNBC India and for setting
up a business portal and entertainment portals," TV-18
managing director, Raghav Bahl said
Part of the funds will also be used
for retiring debts of about Rs 90 million after which
TV-18 will become a zero-debt company.
According to Bahl, when CNBC India
feed is launched, it will also have Hindi-language
programming to expand the viewership base. he pointed
out that the flagship show on the channel, Bazaar,
will be bi-lingual.
Bahl said that they are scouting for
a foreign partner for their Internet related business.
TV-18's larger game plan also includes setting up
a office in the US to exploit the market there and
tie up with a foreign broadcaster too for entertainment-related
programmes.
Post the 25% public offer, the promoters'
shareholding in the company will go down to about
26 per cent, while the employees' trust will hold
about 7.5 per cent stakes.
As part of the growth plan, TV-18 will
be producing 12 hours daily business programmes to
be telecast on the CNBC India channel which will be
an entirely different feed from the current one. TV-18
has taken a 49% shareholding in CNBC India which is
a joint venture with CNBC Asia.
TV-18 will be investing about $ 1.5
million over the next three years in the joint venture
for its 49 per cent equity stake in CNBC India, Bahl
said.
Pointing out that trial runs have already
started, Bahl said, "But we want to make one thing
very clear. We are not turning into a broadcasting
company. By taking an equity position in CNBC India,
we are just protecting our vendor interest as we will
continue to be a TV software company."
Bahl said that though the programme
mix done by TV-18 is 50 per cent business and 50 per
cent entertainment, after CNBC India it will be 60:40
in favour of business programming.
Some of the leading programmes of the
company include Amul India Show on Star Plus, MTV-U
on MTV and Public Demand and X Zone on Zee TV. It
is already producing two business programmes, India
Business Day and India Talks on CNBC Asia.
On financial performance of the company,
Bahl said for the financial year ending September
30, 1999, net profit were Rs 36 million on a total
income of Rs 174.7 million crore and for the current
full year hopes to report a net profit of Rs 110 million
on total income of Rs 300 million.
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