Cinemax India announces price band

Mumbai, Jan 10: Cinemax India Ltd, one of the largest Exhibition theatre chains in india today announced a price band of Rs 135 to Rs 155 for its forthcoming Initial Public Offer (IPO) of 8,920,000 equity shares of Rs ten each.

It comprises of a fresh issue of 7,000,000 equity shares and an offer for sale of 1,920,000 equity shares by the selling shareholders.

Company Chairman Mr Rasesh B Kanakia told reporters,''The fresh issue and the offer for sale are jointly referred to as the 'ISSUE'.

60,000 equity shares of Rs ten each will be reserved in the issue for subscription by employees. The offer of equity share other than the employee reservation portion shall be called the 'NET ISSUE'.

The issue opens on January 18, 2007 and closes on January 24.

The net issue will constitute 31.86 per cent of the fully diluted equity share capital of Cinemax India Ltd. The face value of equity shares of Rs ten and the floor price is 13.5 times of the face value and the cap price is 15.5 times of the face value, he said.

''The capital raised from the issue will be deployed to set up several theatres in various locations across India. As a part of their expansion plans, over the next two years, they propose to set up 19 theatres at identified key locations in which a total seating capacity of appromimately 15,864 seats will be created,'' he added.

UNI