United Television (UTV) will go public in December this year with a Rs 75-100 crore initial public offering.
According to Unilazer Group chairman Ronnie Screwvala, the company is planning to sell 20 per cent holding in the initial offer. UTV plans to bring in a strategic partner, venture into movie production and acquire media companies using the IPO funds.
EM Warburg-Pincus, a Singapore-based private equity investor, is also expected to offload a part of its 24 per cent equity held in UTV, he added. "A simultaneous offer can be made by the company and the institutional investor," he said.
JM Morgan Stanley, which will be the lead bookrunner, is in the process of
working out the due diligence and will
submit a detailed proposal to the Securities and Exchange Board of India. SSKI is expected to be the co-lead manager for the offering.
Screwvala also said the company will move Sebi to relax the entry norms for media companies prior to the issue. "We want to sell only 20 per cent of our equity for the time being. We will request Sebi to allow us to do so," he added.
Sebi rules currently allow only infotech companies to issue less than 25 per cent of their capital in the IPO.
UTV has lined up mega plans for making his company the 'Pan-Asian' media company. These include making acquisitions in the media business, enhancing the library, venturing into Net related activities and provide training to his staff.
UTV will bring in a new strategic partner for training its existing staff. It is exploring the opportunity with Hollywood majors like Rupert Murdoch's Twentieth Century Fox, Warner Bros and Columbia. "We have yet to take a decision on the matter," Screwvala said.
The company will also issue five per cent of the equity to its employees through a stock option scheme. UTV will also have a television channel of its own.
"Broadcasting is certainly on our agenda. But, for the time being, we are focusing on being a leading content provider. We generate revenues of more than Rs 100 crore every year through this activity. We have a single largest library for a non-broadcaster. We plan to eventually get into broadcasting by having a channel of our own," he said.
