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MUMBAI: A regional television broadcasting and publishing company is raising just Rs 18.43 crore (Rs 184.3 million) through an initial public offering (IPO). This will be the lowest IPO size for a media company over a long period of time, and the first after Ortel Communications tapped the market in March 2015.
So, which is this company and why is it raising capital?
Chennai-headquartered Diksat Transworld owns and operates four satellite channels, runs a daily newspaper Tamil News, and has recently ventured into movie production through a division named GR8 Talkies. The first Tamil movie ‘Gugan’ has been released.
Diksat Transworld is offering 4.6 million shares (46,08,000) of Rs 10 each in a price band of Rs 36-40 per share. The issue opens on 29 September and closes on 6 October. The shares will be listed on SME platform of BSE.
The shareholders will be selling the 4.6 million shares. The company will not receive any proceeds from the offer for sale.
The four free-to-air (FTA) TV channels are Win TV (Tamil), Win TV (UP), Cuisine TV and Aaseervatham TV. The company is planning to revamp Win TV UP, which caters to news and current affairs in the state of Uttar Pradesh, and Cuisine TV, which caters to food and culinary. These two channels were discontinued and the plan is to relaunch them soon.
The company reported revenue of Rs 9.14 crore in FY16, up 7.08% over the earlier year. Net profit declined 12.9% to Rs 2.28 million.
Regional TV broadcaster to raise capital via IPO; plans to revamp news channel | TelevisionPost.com
