Mumbai based Nimbus Communications has informed the market(BSE) that they have planning to enter capital markets with its maiden public issue of 22,050,000 equity shares of Rs 10 each constituting Rs 350 crore. The company has filed a Draft Red Herring Prospectus (DRHP) on 5th Octoner 2010 with market regulator Securities and Exchange Board of India (SEBI). The premium to be decided via 100% book building process. The IPO price band has not been decided yet. The Issue, which will be through a 100% book building process, shall constitute 29.19% of the post-issue paid up equity capital of the Company.
The proceeds of the IPO amount would be used by the company in following manner. Rs 129 crore for launching two new channels (Neo Cinema and Neo Zindagi), Rs 116 crore to obtain bank guarantee and provide security deposit for sports rights, Rs 13.24 crore towards geographic expansion of Neo Cricket, Rs 34.98 crore for upgradation of Neo infrastructure (standard definition or SD to high definition or HD) and Rs 50.00 crore for acquisition of new broadcasting rights respectively.
The Equity Shares are proposed to be listed on the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE).
The Book running lead managers to the issue are Edelweiss Capital, Macquarie Capital and Centrum Capital. In addition PNB Investment Services is a co-book running lead manager.
Registrar of the Issue : Karvy Conputershare Private Limited, Hyderabad.
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