VCCircle

Multiplex operator PVR Ltd. has set a price band of Rs 200 to Rs 240 a share for its initial public offer, which aims to raise up to Rs 185 crore ($40.4 million), a Reuters report said.

The company's 7.7-million-share, or 34 percent of the post-issue capital, offer is expected to open December 8-14. The IPO consists of 5.7 million new shares and sale of 2 million shares by private equity firm ICICI Venture, which would hold 27 percent of the expanded capital. ICICI Venture invested Rs 38 crore in 2003, and now owns 47 percent of the company after a series of private share issues.(Via Reuters)

VC Circle adds: ICICI Venture will garner anywhere between Rs 40 crore and Rs 48 crore for its partial exit depending on pricing of the share finally. The valuation of PVR at the peak IPO price is Rs 544 crore. Post-IPO, ICICI Venture will hold 27 per cent of the company, which means its holding will be worth Rs 146 crore. Add Rs 48 crore to it, then the total return - at conservative esitmates, since the share price can go up (or go down) after listing - of ICICI Venture is Rs Rs 195 crore. That's on an investment of Rs 38 crore. Over all, ICICI Venture is making 5 times their money in PVR in just two years. Way to go, Renuka Ramnath!