MUMBAI: Sun TV has fixed the price band of its initial public offering (IPO) at Rs 730 to 875 per share. The issue will open for subscription on 3 April and close on 7 April.

The company aims to raise Rs 6.03 billion at the top end of the price band. Sun TV will offer a fresh equity issue of 68,89,000 equity shares of Rs 10 each for cash, to be made entirely through the book building route.

The issue will constitute 10 per cent of the fully diluted post issue paid-up capital of the company. Following the issue, the shareholding of Sun TV Ltd principal promoter Kalanithi Maran will reduce to 89.99 per cent from 99.99 per cent (61,999,969 shares).

The company has mandated Kotak Mahindra Capital Company and DSP Merril Lynch for the issue. The proceeds of the issue will be used to beef up its subsidiaries, launch more television channels and construct its own corporate office. Investments will also be made in setting up studio facilities and up-linking infrastructure, purchasing new equipment and upgrading the existing ones.

Sun TV Ltd is part of the Sun Network, which runs 14 TV channels, four FM Radio stations, two daily newspapers and four magazines. Sun TV Ltd comprises four Tamil channels -- Sun TV, Sun Music, KTV and Sun News -- and two Malayalam channels -- Surya TV and Kiran TV.