Shemaroo Entertainment IPO subscribed 7.39 times

Gets bids for 4.22 crore shares

The initial public offer (IPO) of Shemaroo Entertainment was subscribed 7.39 times. The IPO received bids for 4.22 crore shares, compared with 57.20 lakh shares on offer, as per NSE data.

The issue opened for subscription on 16 September 2014 and closed on 18 September 2014. The company had set price band of Rs 155 to Rs 170 per share for the IPO. A discount of 10% to the issue price would be offered to retail individual bidders.

Qualified institutional buyers' (QIBs) category was subscribed 5.69 times, non institutional investors' category was subscribed 8.64 times and retail individual investors' (RIIs) category was subscribed 7.79 times.

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

Shemaroo Entertainment'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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