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Sun to raise Rs 208 crore

Sun TV plans to raise Rs 207.8 crore through a public issue of 68.8 million shares, according to a draft red herring prospectus filed with the capital market regulator Securities and Exchange Board of India (Sebi).

According to the offer document placed with Sebi, 68.8 million equity shares of Rs 10 each will be offered, at an offer price of Rs 300 per share. As on March 31, 2005, the company reported net profit after tax of Rs 76.8 crore on a total income of Rs 301.1 crore.

Kalanithi Maran, Sun TV's chairman and MD, who holds 99.99 per cent of the equity, would dilute 10 per cent of his stake following the public issue.

Two years prior to the date of filing the red herrings prospects, Kalanithi Maran held 60 per cent of the comapny's total shareholding.

According to the offer document, M K Dayalu, wife of former Tamil Nadu chief minister, M Karunanidhi, recently sold 5.75 per cent of her holding in Sun TV for a consideration of Rs 36.5 crore.

The company aims to use Rs 113.6 crore of the public issue proceeds towards launching new television channel, Rs 62.3 crore for construction of a corproate office, studio facilities, and additional uplinking facilities and Rs 31.2 crore will be utilised on purchase of new equipment and upgrading of existing equipment.

For the televsion channels launch the investment would be in two phases – Rs 70.3 crore in 2006 and Rs 43.3 crore in 2007.

According to the resolution at the EGM held on December 23, 2005, the authorised capital of Rs 5 crore comprising 5,000,000 equity shares of Rs 10 each was increased to Rs 100 crore.

The net asset value per share of Rs 10 each was Rs 2,339 as of September 30, 2005, according to restated financial statements. The average cost of acquisition of the equity share by the promoter is Rs 6.19 per share.

( www.business-standard.com)

 
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