GBN to raise Rs 105cr via IPO to fund IBN7; launch new channels

New Delhi, Jan 11 (UNI) Global Broadcast News Ltd (GBN), part of the TV18 Group, will raise Rs 105 crore through an Initial Public Offering (IPO), at a price band of Rs 230 to Rs 250 per equity share.

The issue will open on January 15 and close on January 17, 2007.

''Out of the Rs 105 crore, Rs 45 crore will be put in the Group's Hindi-news channel IBN7 and the remaining will be used for repayment of loans,'' GBN Joint Managing Director Sameer Manchanda told reporters here today.

Mr Manchanda added that the company will launch some new channels, but declined to divulge further details.

Out of the total issue, equity shares of up to Rs five crore are reserved for allotment to the company's employees. The net offer to the public will aggregate up to Rs 100 crore.

Of this, 60 per cent will be allocated to Qualified Institutional Bidders, 10 per cent to non-institutional bidders, five per cent to mutual funds, and up to 30 per cent of the net issue will be available for allocation to the retail individual bidders.

The book running lead managers to the issue are ICICI Securities Ltd and Kotak Mahindra Capital Company Ltd. While, the co-book running lead managers are JM Morgan Stanley Pvt Ltd and IL&FS Investment Ltd.

UNI