Media Cos To Raise $678.7 Million From Public Issues; Network18 Lists – MD Raghav Bahl On Plans

Financial Analyst Prime Database has estimated that around 18 Indian media companies are expected raise around $678.7 million from the stock market via public issues, reports Hollywood Reporter. The Global Broadcast News was oversubscribed 48.74 times, and is expected to raise $22 million. Cinema chain Cinemax India raised $30 million. Sony Entertainment Television is not looking to list, it is said that an IPO would be the ideal exit route for some of its private investors.
Network18, the holding company for the TV18 Universe, listed at a price of around Rs.360 today, and some excerpts from an interview that CNBC-TV18 did with Network18 MD Raghav Bahl:
On Network18: Network18 could be looking at a topline of around Rs.500 crores. About raising more capital – leave it to the board to decide. The plans are going to be large, and large plans need to be funded. GBN will be listed shortly.
On Studio18, their movie-making venture: The movie business has changed because of digitalization, incoming transparency and institutionalization. Studio18’s entry will be dramatic – 12-15 films are signed and at least 1 film will be released every month next year. The company should break 100 crore in top line business next year in that movie business. They’re also planning an international release. Each movie carries with it around 30-35 different rights, and they’re de-risking by playing a playing a hedged bet by selling rights to others. Expecting a 20 percent return.
On the Home Shopping Network: A 24 hour home shopping network will be launched with a branded bouquet of products in a few weeks. The trial has been successful.
Looking at the Print medium? No, because they’re in the digital delivery business. If a good opportunity comes, TV18 would only look at the business print space.
The changing media landscape: Media broadcast consolidation is beginning to happen, with greater accountability. CAS and DTH, and the entire television broadcasting system will be digitized. However, it will be a slow process driven by technological change.

Also Read:
WWIL And Zee News List On Stock Exchanges; Subhash Chandra Talks About Plans

Disclaimer: I own an inconsequential number of shares of TV18 and its demerged entities including Network18