Shemaroo Entertainment plans to raise Rs 120 crore from IPO

IPO price band fixed at Rs 155 to Rs 170 per share

Shemaroo Entertainment is coming out with an initial public offering (IPO) amounting to Rs 120 crore at a price band of Rs 155 to Rs 170 per share of face value Rs 10 each.

The issue will open for subscription on 16 September 2014 and will close on 18 September 2014. A discount of 10% to the issue price is being offered to retail individual bidders. Out of Rs 120 crore which will be raised, Rs 106 crore will be used to fund working capital requirement and rest for general corporate purpose. The company's business is working capital intensive.

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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