Shemaroo files for Rs 1.15 bn IPO

MUMBAI: Shemaroo Entertainment, the integrated media content firm with activities across content acquisition, value addition and content distribution, is planning to raise Rs 1.15 billion via an initial public offering (IPO).

Shemaroo has filed its draft red herring prospectus (DRHP) with the Securities & Exchange Board of India (Sebi).

At present, of a total of 19.85 million equity shares, promoters hold 90.14 per cent stake while the remaining 9.86 per cent is with other corporate bodies.

Out of Rs 1.15 billion, the company intends to use Rs 1.05 billion for working capital requirements while remaining will be used for other general corporate purposes.

For the year ended 31 March 2011, Shemaroo Entertainment reported a net profit of Rs 136.2 million on a total income of Rs 1.60 billion. The company has a debt of Rs 1.28 billion.

Yes Bank and ICICI Securities are the book running lead managers while Link Intime India is registrar to the issue.

Set up in 1962, Shemaroo has a content library featuring more than 2,500 titles, including regional language movies.