Sea TV IPO Subscribed 1.38 times on first day

>The IPO by Sea TV Network Limited, Agra-based company engaged in providing services of a Multi System Operator (MSO) to various Local Cable TV operators of Agra city, received very encouraging response from investors and was subscribed 1.38 times on the very first day today, according to data available on NSE site. This Rs 5020 lacs IPO in the price band of Rs 90 to Rs 100 per equity share of Rs 10 each, closes on 29th September. Chartered Capital and Investment Limited is the Book Running Lead Manager to the Issue and Link Intime India Pvt Ltd is the Registrar to the Issue. The Equity shares are proposed to be listed on BSE, the designated stock exchange.

The promoters of Sea TV are in this line of activity since about 16 years and are well conversant with the Cable TV industry. Sea TV is one of the three existing MSOs in Agra City and it also has its own local channels, programmes of which are produced by its own production team. These local channels mainly focus on Agra city/U.P State news/events and information, which is more relevant to the city viewers. These channels are broadcasted free of charge to the TV subscribers of Sea TV.

Now Sea TV proposes to adopt latest technology i.e. IPTV for providing TV channels to its viewers. It already has a network of about 150 franchisees throughout Agra city. The Company’s proposed expansion plan of Rs 5965 lacs has been appraised by Allahabad Bank and the Bank has sanctioned a term loan of Rs 895 lacs. To meet the remaining fund requirement, the Company proposes to make a public offer of Rs 5020 lacs and contribute Rs 50 lacs from internal accruals.

Part of the net proceeds of the Issue is proposed to be utilized for expansion plan which include setting up of complete Digital Headend and network for implementation of Conditional Access System (CAS) to convert from the present Analog system to distribution to a Digital System, setting up network for complete IPTV solution, setting up of own cable distribution (underground optical fiber) network capable of digital transmission throughout Agra City and adjoining areas and also setting up own 20 branch-offices in the city including in the adjoining areas with required infrastructure for receiving digital signals and re-transmitting the same without much value addition through co-axial cables to individual customers/subscribers.