Brahma Interactive, an Indore-based entertainment company, has plans to enter the capital market with its initial public offering (IPO) to fund its two multiplex projects, one each in Indore and Bhopal. The company has filed the draft prospectus with the Security & Exchange Board of India (Sebi). | |
| The total estimated project cost is Rs 31 crore. The company plans to fund the projects with Rs 5.75 crore being promoters' contribution, Rs 11.78 crore term loan and Rs 13.5 crore from the IPO. The company has proposed a public issue of 50,00,800 equity shares of Rs 10 each at a premium of Rs 17 per share. |
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| "We have informed Sebi and expect the IPO to come in April," said Bharat Bindal, managing director, Brahma Interactive. |
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| He added, "We are in talks with the Indore and Bhopal Development Authority for land. By May end, we hope to start the construction work." |
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| The project is expected to be completed by the end of next year. |
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| The two multiplexes will have four screens each with five daily shows offering a total set capacity of 1100. Brahma Interactive is running a multiplex in Indore, Velocity III, which was launched in 2003 with an occupancy rate of 30-35 per cent. |
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| "It is the standard occupancy rate for multiplexes in the country except a few. We are trying to provide facilities at par with those in the metros," Bindal said. |
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| The company also plans to expand to other cities. "We hope to expand to cities such as Ratlam and Ujjain which show potential to have such multiplexes. However, we have no immediate plans for expansion and we are not targetting metros," he noted. |
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