GBN gains 104% on BSE debut

CNN-IBN and IBN7 broadcaster lists at 70% premium.

Global Broadcast News (GBN), which operates English news channel CNN-IBN and Hindi channel IBN7, made a sizzling debut on the stock market today. The scrip listed at a 70 per cent premium and closed at Rs 510, more than double the issue price of Rs 250.

In the process, GBN, promoted by the TV-18 Group, beat all media companies on debut-day appreciation of share prices. The most impressive performance by a media stock on its opening day so far was TV Today's, which saw its stock price rising by 90 per cent over its issue price. 
 

WEALTH IN FOCUS (MEDIA STOCKS ON LISTING DAY)
Company	Issue price	Closing price	% Change
GBN	250	510	104
TV Today	95	181	91
Sun TV	875	1466	68
Entertainment Network	162	265	64

The sterling performance of the GBN stock added at least three more to the list of crorepati-shareholders.

Sameer Manchanda, the 45-year-old joint managing director of the company, has become richer by Rs 109 crore, based on the 21.39 lakh GBN shares he holds.

Similarly, Rajdeep Sardesai, the 40-year-old editor-in-chief of the news channel, is smiling all the way to the bank, as his holding of 10.69 lakh shares is now worth Rs 55 crore. Haresh Chawla, joint managing director, is also richer by Rs 55 crore.

The top nine news anchors, including Anubha Bhonsle, Suhasini Haider, and Bhupendra Chaubey, are now richer by about Rs 70 lakh, based on their holdings in the company.

Said Hitesh Agrawal, research analyst with Angel Broking, "The doubling of the stock price of GBN on the listing day itself could in part be attributed to the demand for the stock from foreign institutions, which were not allowed to participate in the IPO. While the company's business model is robust and it will continue to grow, we remain wary of the valuation of the stock."

The initial public offering (IPO) of GBN was subscribed 50 times. While the retail portion was subscribed 45 times, the qualified institutional buyers (QIB) segment was subscribed 38 times and the high net worth investor segment was subscribed 159 times.