Shemaroo Entertainment raises funds from anchor investors

Allots 21.17 lakh shares at Rs 170 each

Shemaroo Entertainment has 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.

Shemaroo Entertainment allotted 8.82 lakh shares (41.66% of the total anchor investor portion) to HDFC Prudence Fund and 2.94 lakh shares (13.89%) to HDFC Capital Builder Fund.

The company allotted 1.17 lakh shares (5.53%) to Birla Small & Mid-Cap Fund, 1.17 lakh shares (5.56%) to Birla Sun Life Emerging Leaders Fund-Series I; 88,230 shares (4.17%) to Birla Sun Life Emerging Leaders Fund-Series 2, 1.90 lakh shares (8.98%) to Birla Sun Life Emerging Leaders Fund-Series 3; 1.04 lakh shares (4.92%) to Birla Sun Life Emerging Leaders Fund-Series 4; 2.54 lakh shares (12.01%) to Birla Sun Life Pure value Fund and 69,530 shares (3.28%) to Birla Sun Life New Millennium Fund.

Shemaroo Entertainment's initial public offering (IPO) opened for subscription today, 16 September 2014, and will close on 18 September 2014. The price band for the IPO is fixed between Rs 155 to Rs 170 per share. A discount of 10% to the issue price is being offered to retail individual bidders.

Out of Rs 120 crore which will be raised, 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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