SUN TV LTD-IPO
ssue Opens: 03 April, 2006
Issue Closes: 07 April, 2006
Issue Size : 6,889,000 (No. of Shares)
Lower Price Band : Rs.730
Upper Price Band : Rs.875
Application Multiple: 8 and in multiples there off starting with atleast 8 shares.
Maximum Shares: 112 (for Retail)
Information URL : http://www.sunnetwork.in
Prospectus URL : http://www.sebi.gov.in/dp/suntv.pdf
About the Company:
Sun TV is the largest television broadcaster in the South Indian States of Tamil Nadu and Kerala and is also among the largest television broadcasters in India in terms of audience share. It is following a multi pronged strategy (pay TV, new TV and radio channels) to grow revenue and profits.It currenly offers 4 Tamil Language channels including the flagship channel, Sun TV and two Malyalam Language channels, including the general entertainment channel Surya TV.
Key Strengths
· Marketshare : In Tamil Nadu Sun has had the highest audience share among all networks (including the national ones) for past three years. In Kerala also, for the past three years, it has had the highest audience shares. Sun’s flagship channel Sun TV has had second highest audience share among all TV channels in India during this period.
· Programming : Sun TV with its strong focus on quality programming has been able to attract and retain best production houses. It has an extensive film library
· New Revenue Source : Sun’s pay TV revenues are yet to scale up. Sun will convert its Free To Air channels including its flagship ones to pay mode
· Sun also operates radio stations in three cities in Tamil Nadu including Chennai and has recently successfully bid for additional FM licenses in other cities.
· Launch of 3 new niche Tamil channels in FY 2007 expected to contribute meaningfully to the bottomline in FY 08.
Financials:
2004 : 2005
Total Revenues
Rs. 2725 Mn : Rs. 2903 Mn
Net Income
Rs. 777 Mn : Rs. 768 Mn
EPS
Rs. 17 : Rs. 12
ROE 26 : 21
ROCE 27 : 20
Recommendation: Sun's revenues and profits to grow strongly over the next several years due to strong upsurge in ad revenues, acceleration in pay TV revenues and contribution from new channels and radio channels. Buy for the medium term
Issue Closes: 07 April, 2006
Issue Size : 6,889,000 (No. of Shares)
Lower Price Band : Rs.730
Upper Price Band : Rs.875
Application Multiple: 8 and in multiples there off starting with atleast 8 shares.
Maximum Shares: 112 (for Retail)
Information URL : http://www.sunnetwork.in
Prospectus URL : http://www.sebi.gov.in/dp/suntv.pdf
About the Company:
Sun TV is the largest television broadcaster in the South Indian States of Tamil Nadu and Kerala and is also among the largest television broadcasters in India in terms of audience share. It is following a multi pronged strategy (pay TV, new TV and radio channels) to grow revenue and profits.It currenly offers 4 Tamil Language channels including the flagship channel, Sun TV and two Malyalam Language channels, including the general entertainment channel Surya TV.
Key Strengths
· Marketshare : In Tamil Nadu Sun has had the highest audience share among all networks (including the national ones) for past three years. In Kerala also, for the past three years, it has had the highest audience shares. Sun’s flagship channel Sun TV has had second highest audience share among all TV channels in India during this period.
· Programming : Sun TV with its strong focus on quality programming has been able to attract and retain best production houses. It has an extensive film library
· New Revenue Source : Sun’s pay TV revenues are yet to scale up. Sun will convert its Free To Air channels including its flagship ones to pay mode
· Sun also operates radio stations in three cities in Tamil Nadu including Chennai and has recently successfully bid for additional FM licenses in other cities.
· Launch of 3 new niche Tamil channels in FY 2007 expected to contribute meaningfully to the bottomline in FY 08.
Financials:
2004 : 2005
Total Revenues
Rs. 2725 Mn : Rs. 2903 Mn
Net Income
Rs. 777 Mn : Rs. 768 Mn
EPS
Rs. 17 : Rs. 12
ROE 26 : 21
ROCE 27 : 20
Recommendation: Sun's revenues and profits to grow strongly over the next several years due to strong upsurge in ad revenues, acceleration in pay TV revenues and contribution from new channels and radio channels. Buy for the medium term
posted by Sensex-Blog Admin at 7:55 AM
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