Nimbus plans IPO in March; may raise Rs. 900 Crore
Wednesday, 29 December 2010, 15:28 IST
By PTI
By PTI
Mumbai: Leading sports channel Nimbus Communications that owns Neo Sports and Neo Cricket today said it will come out with an IPO by March to issue 22 million shares, which may see the company raise around Rs. 900 crore.
"We will hit the primary market in the first quarter of 2011," company Chairman, Harish Thawani said. Nimbus plans to use the IPO proceeds to launch two new channels one in Bollywood and another in lifestyle, converting Neo Sports to a high definition format and building new properties like a hockey league, which it launched today.
A total of 22 million shares will be offered to the public through the Initial Public Offer (IPO) and final size of the issue will be determined only after price discovery, Thawani said, adding during the last round of private equity infusion, a share was sold for Rs. 425.
Nimbus expects the final approvals for the IPO from capital market regulator Sebi to come in a month, Thawani said.
He strongly refuted recent reports that the company is forced to go for an IPO because of rising losses, maintaining that Nimbus has been in the black for 20 consecutive years.
"The parent company Nimbus Communications which is going public has been profitable for 20 years in a row," he claimed, and blamed it to vested interests to sabotage IPO.
Post - IPO, Thawani said, his holding will come down to below 30 percent from the current 34 percent. Nimbus also has PE major 3i Sports, and Cisco and Oman Investment Fund as its large shareholders, he said.
Earlier Thawani had said Americorp Ventures, CSI BD Mauritius and Funderburk Enterprises would partially divest their stakes through the issue, while core promoters and 3i Sports would not be selling any stake though the IPO.
Nimbus had drawn up Rs. 350 crore capex plan which will be met through the IPO proceeds. Nimbus intends to spend Rs. 129.1 crore to launch two new channels and Rs. 13.2 crore on expanding Neo Cricket, its exclusive cricket channel, to North America.
The company will spend around Rs. 35 crore on upgrading its production capabilities while another Rs. 50 crore is earmarked for buying new broadcasting rights.
"We will hit the primary market in the first quarter of 2011," company Chairman, Harish Thawani said. Nimbus plans to use the IPO proceeds to launch two new channels one in Bollywood and another in lifestyle, converting Neo Sports to a high definition format and building new properties like a hockey league, which it launched today.
A total of 22 million shares will be offered to the public through the Initial Public Offer (IPO) and final size of the issue will be determined only after price discovery, Thawani said, adding during the last round of private equity infusion, a share was sold for Rs. 425.
Nimbus expects the final approvals for the IPO from capital market regulator Sebi to come in a month, Thawani said.
He strongly refuted recent reports that the company is forced to go for an IPO because of rising losses, maintaining that Nimbus has been in the black for 20 consecutive years.
"The parent company Nimbus Communications which is going public has been profitable for 20 years in a row," he claimed, and blamed it to vested interests to sabotage IPO.
Post - IPO, Thawani said, his holding will come down to below 30 percent from the current 34 percent. Nimbus also has PE major 3i Sports, and Cisco and Oman Investment Fund as its large shareholders, he said.
Earlier Thawani had said Americorp Ventures, CSI BD Mauritius and Funderburk Enterprises would partially divest their stakes through the issue, while core promoters and 3i Sports would not be selling any stake though the IPO.
Nimbus had drawn up Rs. 350 crore capex plan which will be met through the IPO proceeds. Nimbus intends to spend Rs. 129.1 crore to launch two new channels and Rs. 13.2 crore on expanding Neo Cricket, its exclusive cricket channel, to North America.
The company will spend around Rs. 35 crore on upgrading its production capabilities while another Rs. 50 crore is earmarked for buying new broadcasting rights.
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