Our Bureau

Mumbai , Nov. 29

PVR Ltd, a multiplex cinema operator, has announced the price band for its initial public offering at Rs 200-240 a share.

The company plans to offer 77 lakh equity shares of Rs 10 each through the book building process.

The issue consists of a fresh issue of 57 lakh equity shares and an offer for sale of 20 lakh equity shares by The Western India Trustee and Executor Company Ltd, in its capacity as a trustee of India Advantage Fund - I, a trust registered under the Indian Trusts Act, 1882, acting through its investment manager, ICICI Venture Funds Management Company Ltd.

Of the net issue to public, the company plans to reserve up to 50 per cent, or 36.25 lakh equity shares, for allotment to the qualified institutional buyers, including mutual funds, on a proportionate basis. Of this reserved portion, 5 per cent, or 1.81 lakh equity shares, would be exclusively for mutual funds and the remainder is to all QIBs, including mutual funds.

Of the balance, at least 15 per cent, or 10.87 lakh equity shares, would be allotted to non-institutional investors on a proportionate basis and at least 25.37 lakh equity shares, which work out to 35 per cent of the net issue to the public, reserved for allotment to retail investors on a proportionate basis.

The proceeds from the issue would be used to finance new cinema projects, expand the film distribution business, technological upgradation and renovation of cinemas.

The company plans to set up cinemas in Mumbai, Hyderabad, Delhi, Indore, Gurgaon, Lucknow, Chennai, Ludhiana, Aurangabad and Latur.

The book-running lead managers to the issue are ICICI Securities Ltd and Kotak Mahindra Capital Company Ltd.

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