 "UFO sets IPO price band at Rs.615-625")
Cinema distribution company UFO Moviez India on Tuesday announced the launch of its initial public offer in Mumbai.
The company is selling shares worth Rs 600 crore between April 28 to April 30. It will be open to large institutions who will hold shares for a time after listing, so-called anchor investors, one day before.
Axis Capital and Citigroup Global Markets are the merchant bankers handling the issue.
An investment banker handling the issue said they are hoping to list the company by 15th of May.
The shares are being sold by existing shareholders to offer them an exit as well as increase visibility for the company through listing, according to its offer document. Selling shareholders include 3i Research and P5 Asia Holding Investments.
The company in addition to its cinema distribution business,also has revenues from cinema advertising. It claims to be India's largest satellite-based, digital cinema distribution network.
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It had total revenues of Rs.357.23 crore in the nine months ending December. It had profit after tax before minority interest of Rs 40.6 crore.
Fifty per cent of the offer will be allocated to institutional shareholders. Non-institutional investors are allocated 15 per cent, and retail investors get 35 per cent allocation.