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Galaxy Multimedia to tap capital
market
Here's another
player leaping into the television universe. Galaxy Multimedia
Ltd, a multimedia and entertainment company, is coming out
with an initial public offering (IPO) of Rs 25 million at
par to part finance its 5,000 square feet high-tech studio
that is currently being set up at Andheri in Mumbai. The
studio, offering high-end fully digital post production
facilities, is scheduled to commence operations from April.
The total project cost to set up the studio is estimated
at Rs 120.5 million.
The company, promoted by Vipin Rai Bhayana, has its main
focus on multimedia which includes computer based tutorials
(CBTs) for schools and colleges, production of TV software.
"We intend to provide a one-stop shop for all production,
post-production and multimedia requirements ensuring convenience
and constant value-addition to customers. The studio we
are setting up is totally integrated - both video and audio,"
said Galaxy chairman and managing director Vipin Bhayana.
The company will finance the studio project through an initial
equity infusion of Rs 100 million and Rs 25 million through
rupee term loans. Out of the Rs 100 million equity, the
promoters have already invested Rs 51 million and Rs 24
million has been raised from FIIs (DSP Merill Lynch and
Alliance Capital) and associates. The company will raise
the further Rs 25 million from the public. The five-year
rupee term loan of Rs 25 million has been raised from Bank
of India (BoI). The lead manager to the issue is UTI Securities.
Describing the share holding pattern of the company, Mr
Bhayana said that the management (including promoter and
board of directors) holds 51 per cent, associates hold 14
per cent, NRIs and OCBs hold six per cent, FIIs hold four
per cent and the public will hold 25 per cent.
The company has pre-empted its present multimedia installed
capacity for 18 months. It has entered into a tie-up with
Schoolnet India, a company formed by IL&FS, for 18 months
and will be providing it with 10 CBT titles for K-10 programmes.
Galaxy Multimedia is currently working on the development
of education aids. The MoU with Schoolnet India was signed
in October 1999.
Galaxy has also entered into a joint venture with another
media company for producing the television serial Hotel
Hindustani for Zee TV that has been sold to Zee TV through
an associate company Buddha Films. The serial is scheduled
to be on air from February-end. The company is currently
working on four more teleserials slated to be shown on ther
channels.
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