Type | Book Building | Shares on offer | 0.5 m |
---|---|---|---|
Size | Rs 25 m | Face Value | Rs 5 per share |
Floor Price | Rs 50 | Promoters post issue holding | 56% |
Minimum subscription | Book Building | Promoters | Mr. Dheeraj Kumar Kochhar and Mrs. Zuby Kochhar |
Listing | Mumbai and National Stock Exchanges | Lead Managers | HSBC Securities and SSKI Corporate Finance Limited |
Issue opens | 23rd Nov 2000 | Issue closes | 28th Nov 2000 |
Bid/Issue opens | 3rd November 2000 | Bid/Issue closes | 9th November 2000 |
Issue Structure | Book Building Portion | Fixed Price Portion | |
---|---|---|---|
Institutional Investor | Non-Institutional Investor | Retail Investor | |
No. of shares available | 3,002,800 | 750,800 | 1,251,200 |
% of total issue | 60% | 15% | 25% |
Minimum Bid/Application | 1,100 | 1,100 | 100 |
Maximum Bid/Application | Not exceeding the book built portion | Not exceeding the book built portion | 1,000 |
Creative Eye Limited (CEL), incorporated in 1986, was promoted by Mr. Dheeraj Kumar Kochhar, a promoter with substantial expertise in the field of film and television production. The company's first serial was a 26 episode serial called "Kahan Gaye Woh Log" telecast on Doordarshan (DD). A 19 episode detective serial "Adalat", which despite its non prime-time slot, notched up total rating points as high as 55 per cent.
More recently, Creative Eye has made a highly successful foray into a new genre - mythology. In 1997 it began producing "On Namah Shivay", a serial based on a popular deity in the Indian pantheon - Lord Shiva. Om Namah Shivay has been consistently rated among the top five programs on Doordarshan. Other diversification includes sports programming in which CEL is a part of a consortium that markets and sells commercial time for sports events and programs.
Creative Eye is engaged in the production of TV software for Doordarshan and other satellite channels. The company is present in all activities of the production process, right from conception to getting the program telecast on TV and marketing airtime on Doordarshan.
Business Model of Creative Eye
The model also includes a foray into the Internet. The company intends to set up two web based portals namely, www.entry2India.com by FY01 and www.mantrashakthi.com by FY02.
Mr. Dheeraj Kumar Kochhar is actively involved in the production, quality control, and marketing aspects of CEL. He is also the founder of the All India Video Film Producers Association. He has three decades of experience in the fields of acting, directing, and producing.
Ms. Zuby Kochhar, who is an Executive Director of the company, looks after pre-production planning, and related activities like story line conceptualisation and music.
The Indian entertainment sector has undergone a sea change over a decade. The media was mainly dominated by cinema till 1990's. After liberalisation, nearly 20-25 private television channels have entered the fray.
Adspend (%) | FY95 | FY97 |
---|---|---|
Television | 62.50 | 68.80 |
Radio | 20.90 | 15.00 |
Press | 16.60 | 16.20 |
Television has been the key driver behind the growth of entertainment industry. It is expected that the television software industry will generate revenues to the tune of Rs 90 bn by FY05. This growth would be primarily driven by low penetration of television, increasing global acceptance of Indian content and the developments on the Indian convergence front. The world animation segment is also expected to grow from US$ 20 bn in FY98 to US$ 45 bn in FY02. This could also give the entertainment industry a big push.
The three layers of entertainment industry are production, content and delivery. Production includes film making, recording and animation studios. Content includes teleserials, telefilms, cartoons and music. Cinevista is present in all the three categories.
(Rs m) | FY98 | FY99 | FY00 |
---|---|---|---|
Sales | 436 | 389 | 452 |
Other Income | 5 | 12 | 46 |
Total Income | 442 | 402 | 498 |
Expenditure | 416 | 373 | 459 |
EBIDTA | 26 | 29 | 39 |
GPM(%) | 5.9% | 7.4% | 8.6% |
Depreciation | 1 | 1 | 2 |
Interest | - | 1 | 0 |
Profit before tax | 25 | 27 | 37 |
Less: Tax | 9 | 9 | 8 |
Net Profit | 16 | 18 | 29 |
NPM (%) | 3.8% | 4.7% | 6.3% |
Issued shares (m) | 15.0 | 15.0 | 15.0 |
EPS (Rs) | 1.1 | 1.2 | 1.9 |
Where the money comes from... | ||
---|---|---|
(Rs m) | (%) | |
Public Issue | *** | *** |
Internal accruals | *** | *** |
Total | 400 | 100% |
Where the money will go... | ||
---|---|---|
(Rs m) | (%) | |
Development of portals | 20 | 5% |
Procurement of film rights | 65 | 16% |
Expansion of marketing network | 20 | 5% |
Acquisition of rights /commercial time on TV Channel | 40 | 10% |
Expansion of post production studio | 30 | 8% |
Acquisition of TV software including hindi film songs | 20 | 5% |
Working capital | 170 | 43% |
Issue expenses | 35 | 9% |
Total | 400 | 100% |
Particulars | Pre-Offer | Post-Offer |
---|---|---|
% stake in Total | % stake in Total | |
Promoter Group | 74.5 | 55.9 |
TCW/ICICI | 19.6 | 14.7 |
Employees | 1.7 | 1.3 |
Employees trust | 1.5 | 1.1 |
Public | 2.7 | 27.1 |
Total | 100.0 | 100.0 |
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We would like to inform our readers that this IPO note is just a one-time view on the company and in no way implies that there will be regular coverage on the company's performance or any other development. Should we decide to bring the company under research coverage in the future, it will be available exclusively to subscribers of the respective subscription.
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