Nimbus Communications seeks February IPO

Rosemary Arackaparambil

MUMBAI: Indian television content producer Nimbus Communications has filed

for a Rs 1.82-billion ($38.97 million) initial public offering with the

Securities and Exchange Board of India, and plans the float in February, a

senior official said on Wednesday.

The funds are being raised to increase content for television and the

Internet, for media management, for setting up two channels and making motion

pictures and music albums, its executive director and chief financial officer R

K Goyal. told Reuters.

The 13-year-old Nimbus had been planning to tap the markets for some time,

but had postponed its entry because of volatile market conditions.

"The market is now showing signs of improvement and stability and we

plan to launch in the first week of February," Goyal said.

The benchmark Bombay exchange index, which ended Wednesday at 4,086.41, has

gained 17 per cent from its October low of 3,491.55, but is still 34 per cent

off its February high of 6,150.69.

Several media firms - mainly content providers like Balaji Telefilms, Mukta

Arts, Creative Eye, Pritish Nandy Communications and Padmalaya Telefilms, have

raised funds from the capital market in the past six months and are attracting

investor interest.

Goyal said one channel, to be called Showbiz TV, will be launched in the

first quarter of 2001, and another, targeted at women, will be launched in the

second or third quarter.

Nimbus has a joint venture with the UK-based World Sports Group to handle the

distribution, production, management and sponsorship of worldwide cricket events

and all sports in South Asia, he said.

Goyal said Nimbus produces 18 hours of content per week and has a library of

over 3,500 hours.

The firm, which has a share capital of Rs 180 million ($3.85 million), had a

turnover of over Rs 1 billion last year.

(C) Reuters Limited 2000.