Raj Television Network Ltd to come with IPO, files DRHP with SEBI

Raj Television Network Ltd has filed Draft Red Herring Prospectus with SEBI for Initial Public Offering. The company is planning to come out with an IPO of 35,68,250 equity shares of face value of Rs.10 each at a price to be decided through 100% Book Building Process.

The issue includes a fresh issue of 22,70,700 equity shares and an offer for sale of 12,97,550 equity shares by selling shareholders. The issue comprises a net issue to the public of up to 32,43,866 equity shares of Rs.10 each and a reservation of up to 3,24,384 equity shares to the eligible employees of the company. The issue constitutes 27.50% of fully diluted post issue paid-up capital of the company.

The equity shares of the company are proposed to be listed on the National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange Limited (BSE).

VIVRO Financial Services Private Limited is the book running lead manager for the issue and Cameo Corporate Services Limited is the registrar for the issue.

Company Website: www.rajtvnet.in

Raj Television Network Ltd is a regional media house, running entertainment channels in the Tamil language. It presently broadcasts two widely viewed channels ‘Raj TV’ and ‘Raj Digital Plus’ ("Raj TV Network") which together makes it one of the largest regional satellite television broadcaster in Tamilnadu. The premier channel RAJ TV has been in operation since 1994. The company is in the process of launching another television channel in the Tamil language which shall be a multi content channel targeting the youth. Raj TV Network enjoys a good brand value among the viewers for its content & unbiased social views.

RAJ TV was launched in 1994 by its CMD Mr. M. Raajhendran along with his brothers, who specialize in their specific business areas. RAJ TV was one of the first channels to convert broadcast through analog transmission into digital. The Raj TV Network has a large content base which addresses every member of the family and thereby making it a true "People’s Channel".

RAJ TV Network has an advantage of being a mass channel with attractive programming to cater to the needs of the entire family. The Raj TV Network provides the right mix of entertainment, news, religion and culture to provide a wholesome package. The Network provides progammes ranging from films, serials, game shows, classical concerts and programmes related to spiritual tourism apart from discourses by spiritual gurus. The company holds broadcast rights for spiritual programmes of more than 1000 hours of content with a potential to add aggregate 100 hours of content every year.

The company has the largest movie database in Tamilnadu. It holds the rights for around 1368 Tamil films comprising of old classics to recent blockbuster films. The Company also produces non-fiction & other cultural programs which has a wide following among viewers.

The company devotes most of its resources in producing its own serials, film / non film based programmes and employ directors and other technicians including production houses to produced quality programmes for its channels. It has also produced several non-fiction & cultural programs which have wide viewership. With self produced content, the Company owns and holds the entire rights over these programmes and has build an intellectual property base for itself.

The company has predominantly positioned itself as a regional player and a ‘People’s Channel’, delivering the required regional flavour. It enjoys good brand value, primarily due to its concentration on the Tamil speaking population. Over the years, it has focused on catering to the local tastes and preferences of the viewers in the region which has positioned it as one of the leading tamil satellite regional television network. The company has concentrated on developing local language programming with wide ranging formats to suit viewers preference. It also regularly changes programming formats to respond to changes in preferences and trends of the viewers.

Source : Equity Bulls

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