This article was first published 21 years ago

NDTV IPO to mop up Rs 109 crore

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April 19, 2004 15:42 IST

NDTV on Monday said it will raise Rs 109 crore (Rs 1,090 million) through the initial public offer for working capital requirements and to repay Rs 38 crore (Rs 380 million) debt.

The IPO, slated to begin from April 21, comprises fresh issue as well as an offer for sale, and Rs 9 crore (Rs 90 million) of the issue size is reserved for NDTV employees.

Shares of the company will get listed on the Mumbai and National Stock Exchanges, with a price band of Rs 63-70 per share of Rs 4 each.

Announcing the public issue, NDTV chairman Prannoy Roy said investors should evaluate the channel's initial public offer on future growth potential like increasing viewership, better utilisation of advertising time, costless foreign growth and future opportunities in outsourcing technology.

"We have historically made profits all through and made good dividends. Investors should consider this while taking a decision," he said.

The channel has opted for the book-building route for this issue, after which promoters will continue to hold a majority 53 per cent stake.

Asked whether the company was planning to launch a business news channel, Roy said: "All options are open" but declined to comment further. He also did not disclose whether NDTV channels were planning to go pay.

The channels have already begun to be beamed in foreign markets like Europe and the Middle East but in all these places they are encrypted and hence earn subscription revenue per subscriber.

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