Padmalaya To Come Out With Rs 25 Cr Ipo

Padmalaya Telefilms, a fully integrated television software company, is coming out with an initial public offering of 25,00,000 equity shares of Rs 10 each, at a premium of Rs 90 per share.

The issue, expected to mop up Rs 25 crore, opens on May 31. The amount will be utilised to part finance the company's expansion plans that will cost about Rs 54.25 crore.

Padmalaya's expansion plan includes upgrading equipment, like the digital production system; adding new production systems; a tieup with Penta Media Graphics for consultancy services; supply of software and training to set up 2D and 3D studio at Hyderabad and setting up an integrated television software studio.

 

The company has obtained a Rs 10.8 crore non-repayable capital receipt from Reliance Capital to partially meet the project cost. The remaining amount will be raised from promoters' contribution of Rs 18.45 crore and the public issue route.

"The demand for 2D and 3D animation software in the country is very high with the mushrooming of TV channels. We are hopeful of a turnover of Rs 25 crore to Rs 30 crore in the current year from animation alone," Padmalaya Telefilms chairman G S R Krishnamurty told Business Standard.

"In countries like the US, the animation technicians are paid $30 an hour, where as here we do not.