MUMBAI: UTV Software Communications debuted today on the stock market, scaling to 30.8 per cent in early trade on its listed price of Rs 130.
On the Bombay Stock Exchange, the UTV scrip opened at Rs 165 at a premium of 27 per cent. And on strong buying support rose to Rs 170 during intra-day trade. It finally closed the day at Rs 168.
On the NSE the scrip listed at a premium of 15 per cent.
According to a market analyst, UTV is valued at Rs 3.27 billion on its close price of Rs 168. Going forward, films and television will significantly drive the topline and profits of the company, the anyayst said.
Discussing its debut, another analyst said that the market expects UTV to post earning per share (EPS) of Rs 8 and Rs12 for FY 05 and FY 06 respectively.
The company's initial public offer raised Rs 910 million through an issue of nearly 7 million shares, representing 34.1 per cent of its post-issue equity capital.
UTV's IPO was oversubscribed 26.35 times when it closed on 25 February.
A media analyst asserts that on the over-value denominator it is seen that with most scrips the similar allegations are made and these would include the likes of TV Today, NDTV, TV-18 and Zee.
Commenting on the comapny's debut on the stock market UTV MD Ronnie Screwvala said, "I'm very happy at the scrip's performance."
Elaborating further, Screwvala said the company has lined up a new show for Sony namely, Tarana. There are two to three shows which have still to be finalised but should come on air soon, he added.
On the film front, Screwvala said UTV is slated to distribute six to seven movies in this calendar year.
The movies include Rang De Basanti directed by Rakyesh Mehra (releasing in June), Blue Umbrella directed by Vishal Bharadwaj (Maqbool), will be out for release post-Cannes in April. The movie has been adapted from a Ruskin Bond book. Some of the other movies are Shaadi No I and Parineeta.
Speaking on the performance of the Hungama Channel, he pointed out that the kids' channel has progressed and It is third in the league after Pogo. In fact in many day-parts the channel has taken over Pogo.
Highlighting that Hungama channel garners more TVR's (0.56 per cent) on Friday's than even Cartoon Network (0.64 per cent), leave alone Pogo (0.27 per cent) and Disney (0.10 per cent), Screwvala expressed confidence that Hungama would continue to do well.
