Thursday, September 23, 2010

Sea TV Network Ltd IPO - Analysis, Recommendation, Subscription, Allotment, Listing

Analysis:
Sea TV Network Ltd, an Agra (U.P) based company engaged in providing services of a Multi System Operator (MSO) to various Local Cable TV operators of Agra and adjoining areas, has come out with a 100% book built issue of Rs 50.2 crore.

Sea TV has its own local channels, programmes of which are produced by its own production team. These local channels mainly focus on Agra city/U.P State news/events and information, which is more relevant to the city viewers. They already have a network of about 150 franchisees throughout Agra city.

The issue will open on September 27 and will close on September 29, 2010. The company has fixed an issue price range of Rs 90-100 per equity share.

The objective of the issue are setting up complete Digital Headend and network for implementation of Conditional Access System (CAS); setting up network for complete IPTV Solution; setting up of own cable distribution network; and setting up own 20 branch-offices in the city.

The market lot and minimum order quantity is 65 equity shares. The shares will be listed on BSE.

The book running lead manager is Chartered Capital and Investment Limited. The Registrar of the issue is Link Intime India Private Limited.

Recommendation:
We will not recommend this IPO to investors. The company is trying its luck considering booming IPO market but there are better IPOs to invest. Even ICRA has assigned Grade 1 to the IPO.

Subscription:
The IPO has got 9.39 times subscribed due to NII support. At the close of the IPO,
QII segment got subscribed 1.66 times
NII segment got subscribed 40.94 times
Retail segment got subscribed 7.45 times

Allotment:
The company has fixed the issue price at Rs.100. Click here to check if you have been alloted Sea TV shares!
 
Listing:
Sea TV Network got listed on 14th October. The share closed at Rs 106, a premium of 6% over issue price of Rs 100 a share. It witnessed an intraday high of Rs 126.15 & low of Rs 105.05 a share.


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