GBN to invest Rs 45 cr in Hindi news channel

Ahmedabad, Jan 10: The Global Broadcast News Ltd, which owns and operates a leading news channel in the country, today said it plans to invest Rs 45 crore on the expansion of its Hindi news channel.

Stating this, Sameer Manchanda, Joint Managing Director of GBN told reporters here that the company is set to enter the capital market, with equity shares worth upto Rs 105 crore. ''Of this, about Rs 45 crore will be spent on the expansion into Hindi news channel, IBN7.'' He said an initial public offering of equity shares is being made, aggregating up to Rs 105 crore.

GBN is part of the TV 18 group, which owns and operates business channels such as CNBC-TV18 and CNBC Awaaz besides internet portals.

The price band for the issue, which will open on January 15, 2007 and close on January 18, 2007, has been fixed at Rs 230 to Rs 250 per share.

''With better subscription models like Direct to Home, CAS, IPTV and mobile TV, GBN expects subscription revenue to compliment the advertisement revenues,'' Mr Manchanda said.

Also speaking on the occasion, Editor-in-Chief Rajdeep Sardesai said, ''The CNN-IBN is a journalist-driven channel and we realise that there is a lot of scope for expansion in the Hindi news genre.

We want to take capital and invest in an area where there is tremendous growth opportunity.''

UNI