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.