Global Broadcast News Limited, which runs CNN-IBN and IBN-7, has announced its IPO at a price band of Rs.230 to Rs.250 per share, at a face value of Rs.10. The issue will open on January 15th and close on January 18th. Rs.5 crore is being reserved for eligible employees. Of the total Rs.105 crore expected to be raised, 60 percent is to be allocated Qualified Institutional Bidders, of which 5 percent will be made available to mutual funds. 10 percent of the net issue will be made available to non-institutional bidders and upto 30% retail investors.
According to Sameer Manchanda, Joint MD of GBN, of the Rs.105 crore they intend to raise, 40-45 percent will be used for acquiring IBN-7, 25 percent for repayment of loans, and the rest for general corporate purposes. GBN has signed an MOU with Zee Turner for cable and CAS in India, and will look to tap the person of Indian origin (PIO) market internationally. [sources: IBNlive, moneycontrol.com and this release]
NDTV, in comparison, closed the day at Rs.298.5. One should also keep in mind that IBNlive, GBN’s Internet property, has been transferred to Web18.
Related:
– IBNLive.com Transferred To Web 18 Holdings; Global Broadcast News Gets 15% In Lieu Of It
– CNN-IBN Owner Global Broadcast News To Go Public; Files Red Herring Prospectus
Disclaimer: I own an inconsequential number of shares of TV18, which has holdings in GBN
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