UTV IPO opens on Feb 21

The initial public offer (IPO) of UTV Software Communications will open on February 21.

The company is planning to offer 69,99,950 equity shares of Rs 10 each through the 100% book building route to finance its expansion plans.

"The company has fixed a price band of Rs 115-130 per share for the public issue. The size of the issue would be Rs 91 crore at the upper end of the price band and Rs 80.5 crore at the lower end of the band," Ronnie Screwvala, CEO of UTV Software Communications, said today.

The proceeds would be used to enhance production facility, office infrastructure augmentation, investment in its children's channel Hungama TV, and fund production, post-production and distribution of movies, Screwvala said.

The bid closes on Febraury 25. The book running lead manager is Enam Financial Consultants, and co-book running lead manager is IL&FS Investsmart.

Ronald D'Mello, director (opearations & finance) of UTV, said: "Rs 30 crore would be infused for movie production and distribution while Rs 10 crore would be for Hungama TV. The company will invest Rs 10 crore in augmenting office infrastructure, and Rs 6 crore in post-production
of movies."

Issue to the public would constitute 34.11% of the fully diluted post issue paid-up capital of the company, he added.