NEW DELHI: At the end of the second day of the IPO today, the TV Today Network issue was oversubscribed 4.37 times. Orders for 63.5 million shares have been placed and trading is expected to start in about three weeks from 27 December.
Even though the TV Today Network initial public offering IPO was over subscribed by 2.5 times the first day yesterday, the company kept the road shows rolling to spread awareness about it.
TVTN, provider of news through its news channel, Aaj Tak and Headlines Today, had announced a price band of Rs 80 to Rs 95 (face value Rs 5 for each share) for its IPO through the 100 per cent book-building route.
According to JM Morgan Stanley chairman Nimesh Kampani, the book running lead manager to the issue, "The news genre in the past three years has witnessed tremendous traction with an ever expanding number of viewers and advertisers. The role and relevance of news and news television has grown exponentially, especially with the advent of Aaj Tak. TV Today Network has effectively leveraged its India Today Group lineage, and given its leadership position, it will remain a formidable player."
TVTN's public offering is one of the first big issues from the media industry in recent times. If the bull run continues on the stock markets, then India is poised to see several other IPOs in the coming months. The media names that have reported about in this regard include NDTV, B4U and Sony Entertainment TV.
The issue would constitute 25 per cent of the fully diluted post issue paid-up capital of the company. The issue will be open for bidding from 18-27 December. The shares will be listed on the Bombay Stock Exchange and the National Stock Exchange of India.
A total of 14,500,000 equity shares are being offered which includes fresh issue of 10,000,000 equity shares by TV Today, and another 4,500,000 equity shares for sale by existing stakeholders up to 50 per cent of the issue shall be allocated to qualified institutional buyers on a discretionary basis, and 25 per cent each to non-institutional investors and retail investors on a proportionate basis, in accordance with the SEBI guidelines.
TV Today Network CMD Aroon Purie feels that the "aim is to tap the boom in the media sector" and use the proceeds from the IPO to capitalise on the growth opportunities in the broadcasting industry. TV Today Network plans to use the proceeds for the execution of a major upgradation and expansion plan. The company plans to upgrade its existing news channel infrastructure, create back-up uplinking infrastructure, acquire state-of-the-art news gathering equipment and create infrastructure to exploit subscription revenues. But going pay is not the immediate agenda of TVTN as Purie feels they'll wait for 18 months before taking a decision on making pay the news channels.
TV Today's flagship brand, Aaj Tak, has been maintaining the leadership position in the news genre in the country. According to G Krishnan. TVTN CEO, "As the leader in the news channel industry we have continuously strived for excellence. We aim to uphold and maintain the same standards of excellence for all the brands in the future."