Shares will be sold in a price band of Rs615 to Rs625 and the company is seeking to raise up to Rs600 crore
Mumbai: UFO Moviez India Ltd, which is in the business of digital cinema distribution and in-cinema advertising, said on Tuesday that it will launch its initial public offering (IPO) of shares on 28 April, seeking to raise up to ₹ 600 crore.
Shares will be sold in a price band of ₹ 615 to ₹ 625. The IPO will see the company’s promoters and investors such as 3i Research (Mauritius) Ltd and private equity fund Providence Equity Partners pare their stakes in the company.
3i and Providence are selling close to half of their stakes in the company through the offer.
The firm has reserved 50% of the offer for institutional investors, 15% for non-institutional investors and high net-worth investors and 35% for retail investors. The issue will close on 30 April.
The firm, which is a pioneer in satellite-based digital cinema distribution in the country, has a presence across 6,626 screens globally, including 4,911 screens in India.
“The company has three revenue streams—exhibitors, which pay a fixed rental income for the equipment; film distributors, which pay per show and advertisers, who pay for in-cinema advertisement opportunity to a large captive audience through our network..," said Sanjay Gaikwad, founder and managing director of UFO Moviez.
Axis Capital Ltd and Citigroup Global Markets India Pvt. Ltd are managing the IPO.
Meanwhile, MEP Infrastructure Developers Ltd saw a slow start to its IPO, which opened on Tuesday. As of 5:00 PM, the firm’s issue was subscribed only 0.18 times, according to data from the National Stock Exchange. MEP has put up 40.2 million shares on sale.
MEP Infrastructure is in the business of tolling and operations and maintenance of roads. The firm’s issue will close on 23 April.
UFO will be the sixth company to raise funds through an IPO in 2015. So far in 2015, four companies have raised ₹ 2,028.7 crore, according to data from Prime Database, a primary market tracker.
While VRL Logistics Ltd and Inox Wind Ltd saw their IPOs oversubscribed by almost 74 times and 18 times respectively, Adlabs Entertainment Ltd and Ortel Communications Ltd struggled to attract investors.