Subhkam Ventures-backed media and entertainment firm Midvalley Entertainment Ltd plans to raise Rs 60 crore through a public float, its fifth attempt to do so over the last decade. Midvalley, that is largely into South Indian language film production, distribution and exhibition, is promoted by Malaysian businessman K Ketheeswaran who along with firms associated to him acquired the company from original promoters Anuradha Chugh, Mala Chugh and Metro Film Pvt. Ltd in 2005-06.
The company also holds the music, video and television rights of movies, television serials for sales to TV channels and other emerging media sources. It also intends to emerge as one of the leading theater chains in Southern India and has currently entered into screening agreements with 46 theaters in distribution territories of Hyderabad and Tamil Nadu.
This is the fifth attempt by the firm to go public. The company had originally approached Sebi over ten years ago under the previous management and received the market regulator’s observation in June 2000. It again filed with Sebi and received its observation in 2002. It has disclosed that the company, under the previous management had decided not to proceed with the public issue on the above two occasions in view of the then prevailing market sentiments.
Under the new management it again filed its DRHP in July 2007 but the merchant banker withdrew the offer due to inconsistency in the financial information, and eligibility criteria. Thereafter it filed DRHP again in October 2008. It received Sebi’s observation in May 2009 but the firm in view of the then prevailing market sentiments decided not to proceed with the public issue.
For the 10 months ended February’10, the firm had total income of Rs 8.4 crore that came largely from theater collections and distribution of films. It had total income of Rs 21.16 crore for the 12 months ended April’09. The firm had net profit of Rs 30.7 lakh for May’09-Feb’10 period compared to net loss of Rs 47 lakh in the year ended April’09.
The promoter group owns 49.46% stake in the company with FIIs owning 5.8%. Domestic and overseas corporate bodies own around 30% and Indian public holds about 10%. The rest is owned by foreign nationals among others.
It is not clear when and at what price Subhkam Ventures acquired the 2.11% stake that it owns currently. It has been holding on to this stake for atleast two years.