Midvalley Entertainment to raise Rs 60 cr via IPO

Chennai-based Midvalley Entertainment Ltd that is engaged in film production, distribution and exhibition in South India, plans to raise Rs 60 crore through an initial public offer (IPO).

The company plans to issue equity shares of Rs 10 each for cash at a premium to be decided through book building process, aggregating Rs 60 crore. The issue will open on January 10 and close on January 12.

The company intends to spend Rs 15 crore by entering into screening agreements with 300 cinema theatres in Tamil Nadu, Andhra Pradesh and Karnataka, Midvalley Entertainment Company Secretary S N Madhavan told PTI here.

The company has also earmarked Rs 25.95 crore for renovation and up-gradation of cinema infrastructure with digital equipment and other related assets for select 100 screens in south India, Madhavan said.

The company proposes to renovate without any structural changes 100 select theatres where it had entered into screening agreements, he said, adding that the company has library of 650 films.

The company entered into film exhibition business in 2006. The company has entered into screening agreements with 46 theatres running under its banner as on June 2010.