After living in a state of complete denial for over six years, the undisputed satellite king of the South and media baron, Mr Kalanidhi Maran, chairman and managing director of Sun Network, has finally decided come out of the shell to take the plunge into the capital markets.
According to reliable sources in the merchant banking community, Sun Network, which controls India’s second largest satellite television network SunTV, is expected to hit the markets somewhere around March-April of 2006 to raise a maximum of Rs 600 crores. The company has reported a topline of Rs 600 crores in the last fiscal.
According to sources, the group, which is right now preparing its Red Herring Prospectus is expected to approach the Securities Exchange Board of India (Sebi) very soon to seek approval for its maiden initial public offer (IPO). Sources close to the developments said that Sun Network has also zeroed down upon the book running lead managers (BRLM) for its proposed IPO. DSP Merrill Lynch Limited (DSPML), one of India’s leading investment banking and wealth management companies, and Kotak Securities have been appointed as the BRLMs for the proposed IPO which, according to sources, is expected to take the 100 per cent book-building route. The proceeds of the IPO are expected to be used by Sun to launch new channels and acquisitions.
With regard to the group’s plans for launching new channels, sources suggest that Sun is planning to launch a new sports channel for the South and a Tamil kids channel sometime during the next fiscal.
Speaking to The Asian Age, sources close to Sun Network said that Mr Maran is currently in talks with Mr Ronnie Screwvala, founder chairman of Mumbai-based entertainment major United Television (UTV). It is expected that Sun may launch the Tamil version of UTV’s kids’ channel Hungama TV.
After deciding to ride the stock market boom in 1999, when it was rumoured that Sun was planning to come out with a Rs 1,200-crore IPO, Mr Maran subsequently shelved his plans to raise public money after the great Internet bubble burst. Since then, Mr Maran had been consistently maintaining that he had no plans to go for an IPO.
According to reliable sources in the merchant banking community, Sun Network, which controls India’s second largest satellite television network SunTV, is expected to hit the markets somewhere around March-April of 2006 to raise a maximum of Rs 600 crores. The company has reported a topline of Rs 600 crores in the last fiscal.
According to sources, the group, which is right now preparing its Red Herring Prospectus is expected to approach the Securities Exchange Board of India (Sebi) very soon to seek approval for its maiden initial public offer (IPO). Sources close to the developments said that Sun Network has also zeroed down upon the book running lead managers (BRLM) for its proposed IPO. DSP Merrill Lynch Limited (DSPML), one of India’s leading investment banking and wealth management companies, and Kotak Securities have been appointed as the BRLMs for the proposed IPO which, according to sources, is expected to take the 100 per cent book-building route. The proceeds of the IPO are expected to be used by Sun to launch new channels and acquisitions.
With regard to the group’s plans for launching new channels, sources suggest that Sun is planning to launch a new sports channel for the South and a Tamil kids channel sometime during the next fiscal.
Speaking to The Asian Age, sources close to Sun Network said that Mr Maran is currently in talks with Mr Ronnie Screwvala, founder chairman of Mumbai-based entertainment major United Television (UTV). It is expected that Sun may launch the Tamil version of UTV’s kids’ channel Hungama TV.
After deciding to ride the stock market boom in 1999, when it was rumoured that Sun was planning to come out with a Rs 1,200-crore IPO, Mr Maran subsequently shelved his plans to raise public money after the great Internet bubble burst. Since then, Mr Maran had been consistently maintaining that he had no plans to go for an IPO.