Raj Television Network Ltd enters capital market

Chennai, Feb 13: The Chennai-based Raj Television Network Ltd, a regional broadcaster and media company is entering the capital market with an initial public offering of 35,68,250 equity shares at a face value of Rs 10 for cash on a premium to be decided through a 100 per cent book building process to mobilise funds for their proposed expansion activities.

Talking to newspersons here today The Managing Director of the Raj TV M Raajhendharan said the objects of the IPO was to strengthen production facilities, enhance content and content acquisition, to launch a new youth-centric television channel, broadcast existing channels in the International market, produce short and telefilms, acquire and export films in the international market and to construct a new studio premises at an estimated cost of Rs 7.15 crore.

He said the price band for the issue had been fixed between Rs 221 and Rs 257 per equity share. The issue opens tomorrow and closes for subscription on February 23, he added.

He said the shares of the company were proposed to be listed in the Bombay and the National Stock Exchanges.

Mr Raajhendharan also pointed out that they would launch a new youth channel, targeting the age group of 14 to 40 by June-July this year. The proposed studio would be ready by the end of this year, he added.

The company's senior Vice President B Sathya Prakash said the company posted a total income of Rs 3,195.98 lakh during 2005-06, as against Rs 2,964.42 lakh in the previous year. The total income was Rs 30 crore upto December last, with the net profit of about Rs 10 crore, and hoped by the end of the current fiscal, they will do better than the last year, he added.

UNI