Shemaroo trading almost flat after debuting at a premium

Shares of Shemaroo Entertainment were trading at Rs 171 at 10:32 IST on BSE, a premium of 0.58% over the initial public offer price of Rs 170.

Meanwhile, the S&P BSE Sensex was down 20 points or 0.08% at 26,610.51.

The stock debuted at Rs 180, a premium of 5.88% to the initial public offer (IPO) price. So far the stock hit a high of Rs 181 and a low of Rs 171. On BSE, 6.01 lakh shares were traded on the counter.

Shemaroo Entertainment's IPO was subscribed 7.39 times with bids received for 4.22 crore shares, compared with 57.20 lakh shares on offer. The issue had opened on 16 September 2014 and closed on 18 September 2014. The company had priced the IPO at the top end of Rs 155 to Rs 170 per share price band. A discount of 10% to the issue price was offered to retail investors.

The 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's consolidated net profit rose 16% to Rs 27.27 crore on 23% growth in net sales to Rs 264.61 crore in 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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