DQE plans IPO

Hyderabad-based animation, gaming and entertainment company DQ Entertainment (International) Limited has filed the draft red herring prospectus with the Securities and Exchange Board of India to enter the capital markets with an IPO of 19.8 million equity shares of Rs 10 each.

The equity shares are proposed to be listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited.

The issue, which will be through a 100 per cent book-building process, comprises a net issue to the public of up to 18.8 million equity shares and a reservation of up to 991,282 shares for subscription by eligible employees. The issue will constitute 25 per cent of the post issue paid-up capital of the company. The net issue will constitute 23.75 per cent of the post issue paid up capital, the company said in a release on Thursday.

At least 60 per cent of the net issue will be allocated on a proportionate basis to qualified institutional buyers (QIB portion). The company may allocate up to 30 per cent of the QIB portion to anchor investors on a discretionary basis. Further, 5 per cent of the QIB portion will be available for allocation on a proportionate basis to mutual funds only.

Up to 10 per cent of the net issue will be available for allocation on a proportionate basis to non-institutional bidders and up to 30 per cent of the net issue will be available for allocation on a proportionate basis to retail individual bidders, the release added.