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Creative Eye to relaunch IPO at cut price

Our Bureau

MUMBAI, July 10

TELEVISION software company Creative Eye Ltd has said it is relaunching its initial public offering of 25,02,400 equity shares at a discounted price, citing weak market sentiment as the reason.

Mr. Dheeraj Kumar, Managing Director, Creative Eye, said the possibility of its shares listing at a much lower price prompted the company and its merchant bankers to relaunch the issue at a discounted price.

Mr. Kumar did not specify when the issue would be relaunched. Neither did he reveal the revised price, except to say that it will be at a discount.

Creative Eye had recently launched its IPO, of which 75 per cent was through the book-building portion and remaining through the fixed-price portion. The book-built portion of the IPO at a floor price of Rs. 225 per share of face value Rs. 10 was over-su bscribed 1.25 times.

Most of the bids were at the floor price level.

``The company has decided to relaunch the issue to respect investor sentiment,'' an official press release said today. Mr. Kumar said that the relaunch would include the book-built portion and money raised earlier through the route will be returned to in vestors.

The fixed price portion of 6,25,600 shares was originally slated to open on July 20, 2000.

The company entered the market to part-finance expansion plans that included upgradation of the post-production studio, acquisition of television software, including Hindi films, acquisition of rights and commercial time on TV channels, expansion of adve rtising division, procurement of film rights and plans to develop the portals -- entry2India.com and mantrashakti.com.

The book-running lead managers to the issue are HSBC Securities and Capital Markets (India) Ltd.