Riding its success on the domestic bourses, Global Broadcast News Ltd (GBN) has decided to list either on the London Stock Exchange or on the Euronext in the next four months, making it the first Indian media company to be listed outside the country.
The company, which broadcasts the CNN-IBN news channel and has a controlling interest in the Hindi channel IBN7, was planning to raise up to $200 million (Rs 800 crore) from the overseas market, said Samer Manchanda, joint managing director, GBN, said. While refusing to disclose the details, he added that the company had an ambition growth plan, which needed such large investment.
Since the current foreign holding in GBN is around 7 per cent indirectly - foreign holding in Television18, the parent company - the maximum float size will be around 20 per cent of the expanded equity capital.
GBN’s current market capitalisation company is Rs 1,650 crore. The company listed on the domestic bourses on February 8, 2007. Against the offer price of Rs 250, it is trading at Rs 618 a share. "GBN is planning to raise up to $200 million through issue of fresh equity. We are evaluating listing either on the London Stock Exchange or on the Euronext."
In case GBN manages to mop up $200 million by a 20 per cent equity dilution, it could result in its market capitalisation climbing to around $1 billion.
The company reported a net profit of Rs 2.07 crore on a total revenue of Rs 29.06 crore in the fourth quarter ending March 2007. However, for the year 2006-07, the company has reported a net loss of Rs 32 crore on a revenues of Rs 79.9 crore.
"The media sector is on a growth path and we sense attractive opportunities. Our business plan will continue to reflect market trends," Manchanda said.