Shemaroo IPO: Rs 36-cr shares sold to anchor investors

Shemaroo Entertainment, whose initial public offer begins on September 16 to raise about Rs 100 crore, on Monday sold shares worth Rs 36 crore to nine anchor investors including Birla Sunlife and HDFC mutual funds.

Shemaroo is into film and entertainment content business and its IPO would be the fourth of this year. Prior to that, there have been public offers of Wonderla Holidays, Snowman Logistics Ltd and Sharda Cropchem.

In regulatory filings with Sebi and the two stock exchanges (NSE and BSE), Shemaroo said on Monday that the IPO committee of its board finalised allocation of 21.17 lakh equity shares to anchor investors at Rs 170 each-the higher end of the proposed price band of Rs 155-170 each-for an aggregate amount of Rs 35.99 crore.

The anchor investors include two funds of HDFC and seven funds of Birla Sunlife.

The company said that if the IPO price, discovered through book building, is higher than the price offered to the anchor investors, then these investors would be required to bring in the additional amount within the pay-in date.

Shemaroo has offered a 10 per cent discount to retail subscribers. Of the total shares offered, 60 per cent will be offered to qualified institutional buyers (QIBs).

The company's IPO closes on September 18.

Shemaroo had received the market regulator Sebi's nod to launch the public offer in February. The company filed its draft red herring prospectus (DRHP) in June last year.

The proceeds from the issue would be utilised to fund working capital requirements and general corporate purposes.

The lead managers of the issue are Yes Bank Ltd and ICICI Securities Ltd.

Shemaroo would list shares on the National Stock Exchange and the BSE.