• OUTLOOK ARENA
  • VIEWS ON NEWS
  • MARCH 7, 2000

Entertainment in the IPO market

A slew of media companies are slated to hit the IPO market over the next couple of months. Notable among them are Sun TV, NDTV, Nimbus, Creative Eye, Sagar Entertainment, ATN and UTV.

The media sector is going through a massive transformation with content creators venturing into broadcasting and post-production, the broadcasters venturing into media marketing, pay channels as well as provision of distribution trolleys etc.

The valuations that media stocks have attracted the world over (Time Warner, Viacom, News Corp etc) as well as in India (Zee Television, Sri Adhikari Brothers, Crest Communications, TV 18) have led the media companies especially those catering to the Cable and Satellite market to tap the capital market for funding their ambitious plans.

While Creative Eye is already planning for a Rs. 1.20 bn IPO with the money to be used for creation of post–production facilities apart from production studios and a tele–shopping channel, Nimbus has plans for two television channels apart from radio broadcasting. The company has so far been engaged in media marketing apart from television programming. The Rs 2.31 bn issue is to be priced at around Rs 400.

With quite a lot of quality stocks tapping the IPO market, the primary market is in for good times. Also since all these companies are profit making this will give investors a chance to participate in good quality companies.

However, it is that the valuation of the individual stocks vis-à-vis their fundamentals and the success of their plans will be crucial for determining the gains that investors make.

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst)
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407