MUMBAI: The entertainment industry is riding on the wave of a strong stock market boom. The latest initial public offering (IPO) to have won support of the investors is Chennai-based Pyramid Saimira Theatre Ltd. The issue has been subscribed 15.40 times, the company said.

The equity shares of the company are proposed to be listed on BSE and NSE. Pyramid Saimira Theatre entered the capital market on 11 December with a public issue aggregating Rs 844.4 million. The price band was fixed at Rs 88 to Rs 100 per equity share of Rs 10 each

The company has 148 screens and operates with over 1.8 million sq. ft. The IPO proceeds will be used for expansion of the current theatre chain into the northern region and consolidation in South India.

Pyramid plans to reach 350 screens operational by March 2007 with 9.60 million sq.ft. under operational management. The company plans to have over 2000 screens in 1550 locations across India with 58.75 million sq. ft. under operational management by 2010.

The total fund requirement is estimated at Rs 1.11 billion. This is being financed through IPO money and pre-issue capital and internal accruals of Rs 267.5 million. An amount of Rs 710.75 lacs has already been brought in by promoters on 30th November 2006 towards their contribution to the issue.

The project also includes the conversion of theatres into digital exhibition systems by installing digital projectors, servers, VSAT terminals and audio and video equipments. Further, there will be investment in a central network operating center [“NOC”] which will enable service provisioning for content transmission, rights management, theatre management and networked revenue management.