The Hindu : Business : UTV Software offer on February 21

Online edition of India's National Newspaper
Tuesday, Feb 15, 2005

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Business

UTV Software offer on February 21

By Our Staff Correspondent

MUMBAI, FEB. 14. The integrated media and entertainment company, UTV Software Communications Ltd. (UTV), is entering the capital market on February 21 with a public issue of 6.99 million equity shares of Rs. 10 each through a 100 per cent book building process to part finance its expansion plans. The company has fixed a price band of Rs. 115-130 for the public issue. The bid closes on February 25.

The size of the issue will be Rs. 91 crores at the upper end of the price band and Rs. 80.50 crores at the lower end of the band. The issue comprises fresh equity of 4.50 million shares of Rs. 10 each and offer for sale, by CDPQ (a Canadian private equity investor), of 2.50 million equity shares of Rs. 10 each for cash. The issue consists of 3.50 lakh equity shares reserved for employees on a competitive basis and a net issue to public of 6.65 million equity shares. The net paid issue to public would constitute 34.11 per cent of the fully diluted post issue paid-up capital of the company.

The proceeds from the IPO will be used for enhancement of production facility and office infrastructure, investment in the `Kids Channel' (Hungama TV) project, funding of SFX & post-production expansion, working capital requirements for movie production and distribution initiatives and general corporate purposes.

UTV initially began as a content producer for television and till date, UTV has aired multiple programmes on 26 channels in 19 countries in 7 languages and has a library of over 5000 hours of programming. In 2003, UTV was awarded the Best Television production house at the Indian Telly Awards.

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