Raj Television Network IPO subscribed by 3.04 times

Mumbai, Feb 26 (UNI) Media company Raj Television Network has received encouraging response from investors who have subscribed fully to its issue by 3.04 times.

The issue received more than 1.08 crore bids, 77.36 lakh bids at cut-off price, brokers said.

According to the subscription details of the regional broadcaster, their issue was subscribed by Qualified institutional buyers by 0.39 times, Non-institutional investors by 4.00, Retail individual investors by 6.92, while Employee Reservation was 1.28, taking the total to 3.04.

The company had entered the capital market with an initial public offering (IPO) of 35,68,250 equity shares at the face value of Rs 10 each. The price band for the issue was between Rs 221 and Rs 257 per equity share, which are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) soon.

Of the total 35, 68,250 equity shares, the employee reservation portion is 3, 24,384 equity shares, the net offer to the public is 32,43,866 equity shares.

The issue was made through a 100 per cent book building process wherein not more than 50 per cent of the net offer to the public shall be allocated on proportionate basis to qualified institutional buyers, including 5 per cent for mutual funds, an official release here said.

Out of these, not less than 15 per cent of the net offer to the public shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 35 per cent of the net offer to the public shall be available for allocation on a proportionate basis to retail bidders, subject to valid bids being received at or above the issue price. Upon completion of the issue, the promoter group will own 72.50 per cent of the post-issue equity share capital.

The IPO was issued with the aim to strengthen production facilities, enhance content and content acquisition, launch a new youth-centric television channel, broadcast existing channels in the international market, produce short-films and telefilms, acquire and export films in the international market and construction of a new studio premises, the release disclosed.

The book running lead managers to the issue are Vivro Financial Services while Canara Bank is the co-manager, the release added.

UNI