Shemaroo Entertainment IPO subscribed 0.8 times on day two

Gets bids for 46.04 lakh shares

The initial public offer (IPO) of Shemaroo Entertainment was subscribed 0.8 times on second day of the bidding for the IPO today, 17 September 2014. The IPO received bids for 46.04 lakh shares till 16:00 IST, compared with 57.20 lakh shares on offer, as per NSE data.

The issue closes tomorrow, 18 September 2014. The company is offering shares in the price band of Rs 155 to Rs 170 per share in the ongoing IPO. A discount of 10% to the issue price is being offered to retail individual bidders.

Shemaroo Entertainment on 15 September 2014 raised Rs 35.99 crore through pre-initial public offer (IPO) placement of 21.17 lakh equity shares to nine anchor investors. The shares were allocated at upper end of the IPO price band of Rs 170 per share.

Out of Rs 120 crore which will be raised through the IPO, Shemaroo Entertainment will use Rs 106 crore to fund working capital requirement and rest for general corporate purpose.

The company's consolidated net profit increased by 16% to Rs 27.27 crore on 23% rise in consolidated net sales to Rs 264.61 crore in the year ended 31 March 2014 (FY 2014) over FY 2013.

Shemaroo Entertainment is in the business of aggregation, production and co-production of cinematograph films and dramas and exploiting and distributing rights of films and dramas through various medium such as television licensing, DVD and VCD release; rights of content through new distribution avenues such as Internet protocol television, video on demand, and mobile platform.

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