SUN TV to enter Capital Market (IPO)

Sun TV, one of the biggest TV Networks in India is open for subscription with an initial public offer of 68,89,000 equity shares of Rs 10 each through 100% book building process.The issue will close on April 7, 2006 and the price band has been fixed between Rs 730 and Rs 875. The company proposed to be listed on the BSE and the NSE.

It is well known that the current IT Minister of India, Dhayanidhi Maran & his Grandpa M Karunanidhi, DMK President & ex-Chief Minister of TamilNadu & their family is having the full control over this TV network.

A quick look at Sun TV IPO:

Company details

• Four Tamil channels including one news channel - Sun TV, KTV, Sun Music, Sun News
• Two Malayalam channels - Surya TV and Kiran
• Three FM channels in Chennai, Coimbatore and Tirunelvelli and Visakapatnam through subsidiaries
• Has extensive programming content; rights to 2650 regional movies
• Won 67 bids in phase II FM bidding; subsidiaries would choose & retain 46 licenses

Issue snapshot

• Issue of 68.89 lakh shares
• Price band of Rs 730-875  (My fixture is at 840)
• Issue closes on April 7, 2006

Objects of the issue

• Launch of new channels: 113.68 crore
• Construction of corporate office: Rs 62.34 crore
• Purchase of new equipments & upgradation: Rs 31.2 crore
• Capitalisation of radio subsidiaries for operating 46 licenses: Rs 355.47 crore

Financial details - Half year ended September 2005

• Net revenues at 150.93 crore versus Rs 135.4 crore
• Operating profit: Rs 86.9 crore
• Net profit: Rs 61.4 crore versus Rs 32.2 crore
• FY05 net revenues at 290.3 crore versus Rs 261.6 crore
• FY05 operating profit at Rs 175.3 crore
• FY05 net profit at Rs 76.7 crore versus Rs 77.7 crore

 Have a look at this small issue(Vaiko & Sun TV), which in no way related to the listing.

"I have today amicably resolved the issues between my two sons, Mukesh and Anil, keeping in mind the proud legacy of my husband Dhirubhai Ambani"    said Kokilaben (Wife of Late. Dhirudhubai Ambani).

The Rs.100,000 crore($20 bn) empire split between the Ambani brothers, Mukesh getting RIL and IPCL & his younger sibling Anil heading Reliance Capital, Reliance Energy and Reliance Infocomm ended after a long six month issue. It is said that the settlement is based on the idea by Mr. KV Kamath, MD & CEO of ICICI Bank.

I was alloted 201 shares. Nearly 35 saksoft employees applied it seems, and only myself &  Mr. Sankaran from the Admin department got it. So its a mere luck. It is due to oversubsription. Nearly, 37 times it was oversubscribed in retail investments sector.

201 shares @ a price of Rs. 30/- so totally Rs. 6030/- Now im waiting for the shares to listed on the NSE. Will be there  in NSE from 10th or 11th of this month. I hope it will exceed Rs. 50 (so that i will have more gain ;) )

For information on allotment  : http://www.saksoft.com/sak_feb05/saksoft_allotment.pdf

Yes, our company is planning for expansion. Listing is on NSE only. We do business in the most of well know banks in abroad and in India. I still feel this is for more reachability of the company. Im planning to take part in the IPO.

For more details visit  http://www.saksoft.com/sak_feb05/saksoftipo.pdf

Update : Aditya Krishna, our Managing Director told press "We have readymade proprietary products like Verisens which allow banks to quickly implement business intelligence solutions that enhance the value of their core business offering,"  regarding the IPO.

Issue price is Rs.30 (Face Value 10 + Premium 20),it is priced moderately less. 25,00,000 Lac shares @ Rs.30 yielding  Rs. 7.5 Crores and  opens on 30th March & Closes on 7th April. But no preference for employees ;)

The risk factor is a elongated banana leaf, it explains a lot..... and I was told by people in Admin that it is oversubcribed nearly 30 times in the 5th day of its opening!!!! I wish I will get.