CNN-IBN set to mop up Rs 100 cr via maiden IPO

http://www.business-standard.com/common/storypage.php?autono=268826&leftnm=8&subLeft=0&chkFlg=


CNN-IBN set to mop up Rs 100 cr via maiden IPO

Rajesh S Kurup & Tejal A Deshpande / Mumbai December 22, 2006



CNN-IBN, the 24-hour English news channel, is planning to tap the
capital market with its Rs 105 crore initial public offering (IPO).
The maiden float is expected to hit the markets early next year.

The company intends to use the proceeds from the issue for its growth
plans, which include completion of the acquisition of IBN-7.

"We will be hitting the markets early next year, probably in January,
with a Rs 105 crore IPO, of which Rs 5 crore will be reserved for our
employees. That means the offer for public will be Rs 100 crore, and
we intend to use the proceeds for our growth plans," CNN-IBN Managing
Director Sameer Manchanda said today.

CNN-IBN has appointed Kotak Mahindra and ICICI Securities as bankers,
and JM Morgan and IL&FS as advisors to the issue. The pricing of
shares and the percentage of divestment were not revealed, while
CNN-IBN is expected to make an announcement next week.

Subhash Chandra-controlled Zee TV, Prannoy Roy's NDTV and CNBC-TV18
are the other media channels listed on the stock exchanges.

CNN-IBN will use Rs 40 crore from the IPO proceeds for the acquisition
of IBN-7 – the Hindi news channel of the group that earlier belonged
to the Jagaran group.

Manchanda said a decision on the percentage of stake to be offloaded
was yet to be decided. At present, TV-18 and promoters hold 67 per
cent in the company, while Manchanda, Rajdeep Sardesai
(editor-in-chief) and others together own 23 per cent stake. IL&FS
holds the remaining stake.

CNN-IBN was launched on December 17 last year in partnership with
Global Broadcast News (GBN), as television journalist Sardesai quit
NDTV to start another English news channel. GBN was floated by
Sardesai, Manchanda and Haresh Chawla and Turner International.

The network has 20 bureaus with 600 employees in the country.
According to TAM Research, CNN-IBN has a market share of 38.71 per
cent among 25-year-old viewers across the country, compared with its
nearest competitor's 34.41 per cent.


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