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GBN IPO Details

Issue Open Jan 15, 2007
Issue Close Jan 18, 2007
IPO Price ₹250
Face Value ₹10
IPO Size ₹105.00 Cr
Listing At BSE, NSE
IPO Lot Size 25

GLOBAL BROADCAST NEWS LIMITED

(Incorporated on June 6, 2005 under the Companies Act, 1956 as a private limited company. The Company was converted into a public limited company under Section 44 of the Companies Act with effect from December 12, 2005 and its name was changed to Global Broadcast News Limited.)
Registered Office: 601, 6th Floor, Commercial Tower, Hotel Le-Meridien, Raisins Road, New Delhi 110 001
Corporate Office: Express Trade Towers, Plot No. 15 & 16, Sector 18A, Noida, Utter Pradesh 201301, India.
Tel: +91 120 4341 818. Fax: +91 120 4324 106 Contact Person: Mr. Hltesh Kumar Jain, Company Secretary
Email: ipo@tv18online.com. Website: www.ibnlive.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 4,200,000 EQUITY SHARES OF RS. 10 EACH ("EQUITY SHARES") FOR CASH AT A PRICE OF RS. 250 PER EQUITY SHARE OF GLOBAL BROADCAST NEWS LIMITED ("GBN", "THE COMPANY" OR "THE ISSUER") AGGREGATING RS. 105.00 CRORES (THE "ISSUE"). THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 4,000,000 EQUITY SHARES OF RS. 10 EACH AGGREGATING IRS. 100.00 CRORES ("THE NET ISSUE") AND A RESERVATION OF 200,000 EOUITY SHARES OF RS. 10 EACH FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES AGGREGGATING RS. 5.00 CRORES (AS DEFINED HEREIN) (THE "EMPLOYEE RESERVATION PORTION"), AT THE ISSUE PRICE. THE ISSUE SHALL CONSTITUTE 15.71 % OF THE FULLY DILUTED POST-ISSUE CAPITAL OF GLOBAL BROADCAST NEWS LIMITED.

THE FACE VALUE OF EQUITY SHARE IS RS. 10/- EACH. THE ISSUE PRICE OF RS 250/- EACH IS 25 TIMES OF THE FACE VALUE
The Book Running Lead Managers are ICICI Securities Limited and Kotak Mahindra Capital Company Limited. The Co-Book Running Lead Managers are JM Morgan Stanley Private Limited and IL&FS Investsmart Limited. The Equity Shares of the Company are proposed to be listed on The Bombay Stock Exchange Limited ("BSE") and the National Stock Exchange of India Limited ('NSE°) and trading Is expected to start on or around February 8, 2007.

In terms of Rule 19(2)(b) of the SCRR (as defined below), this being an Issue for less than 25% of the post-Issue capital, the Issue Is being made through the 100% Book Building Prooess wherein at least 60% of the Net Issue shall be Allotted on a proportionate basis to QIB Bidders, out of which 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds Only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, Including Mutual Funds, subject to valid Bits being received at or above Issue price If at least 60% of the Net Issue cannot be Allotted to QIB Bidders, then the entire application money will be refunded forthwith. Further, up to 10% of the Net Issue shall be available for allocation on a proportionate basis to Non-institutional Bidders and up to 30% of the Net Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. In addition, In accordance with Rule 19(2)(b) of the SCRR, a minimum of two million securities are being offered to the public and the size of the Net Issue shall aggregate to at least Rs.100.00 crores. The Company has not opted for grading of the issue.

The Issue received 250,673 applications for 208,932,955 Equity Shares resulting In 49.7459 times subscription. The details of the applications received in the Issue from QIBs, Non Institutional Bidders, Retail Individual Bidders and Eligible Employsees (Before technical rejections) are as under:

Category No. of
Applications
No. of shares Subscription (No. of times)
Retall Individual Bidders 249,892 54,211,230 45.1760
Non Institutonal Bidders 372 63,699225 159.2481
QIBs 190 90,346,825 37.6445
Eligible Employees 219 675,675 3.3784

Final Demand
A summary of the final demand at various price levels as per the electronic book Is given below:

Bid Price No.of Applications No.of Shares % to Total Cumulative no.of Shares Cumulative % to
Total
230 255,901 8,913,925 3.7956 234,849,575 100.0000
231 255,726 5550 0.0024 225,935,650 96.2044
232 255,722 550 0.0002 225,930,100 96.2020
233 255,714 275 0.0001 225,929,550 96,2018
234 255,714 2,050 0.0009 225,929,275 96.2017
235 255,712 221,675 0.0944 225,927,225 96.2008
236 255,673 150 0.0001 225,705,550 96.1064
237 255,671 325 0.0001 225,705,400 96.1064
238 255,670 325 0.0001 225,705,075 96.1062
239 255,666 125 0.0001 225,704,750 96.1061
240 255,663 4,776,825 2.0340 225,704,625 96.1060
241 255,550 1,075 0.0005 220,927,800 94.0720
242 255,545 400 0.0002 220,926,725 94.0716
243 255,541 575 0.0002 220,926,325 94.0714
245 255,540 136,775 0.0582 220,925,750 94.0712
246 255,508 50 0.0000 220,788,975 94.0129
247 255,506 1,100 0.0005 220,788,925 94.0129
248 255,504 600 0.0003 220,787,825 94.0124
249 255,500 1,825 0.0008 220,787,225 94.0122
250 255,494 166,784,625 71.0176 220,785,400 94.0114
CUTOFF 243,730 54,000,775 22.9938 54,000,775 22.9938

The Basis of Allocation was finlized in consultation with the Bombay Stock Exchange ("BSE") ) on Jaruary 31, 2007. The IPO Committee of Directors of the Company at its meeting held on February 1, 2007 approved the Basis of Allocation of Equity Shares in the Issue and has allotted equity Shares to various successful applicants.

A) Allocation to Non Institutional Bidders:
This category (net of technical rejections) was over subscribed 159.248 times. The total number of shares allotted in this category Is 400,000 Equity Shares. The category wise details of the Basis of Allocation in this category are as under (Sample):

Category No. of
Applications
% to Total No. of Equity
shares
Applied
% to Total No. of Equity
shares
Allocated
Ratio Total No. of
Equity Shares
Allocated
425 10 3.00 4,250 0.01 25 1:10 25
800 16 4.80 12,800 0.02 25 3:16 75
1,250 1 0.30 1,250 0.00 25 FIRM 25
2,500 2 0.60 5,000 0.01 25 1:2 25
5,000 6 1.80 30,000 0.05 32 FIRM 192
10,000 27 8.11 270,000 0.43 63 FIRM 1,701
20,000 9 2.70 180,000 0.28 126 FIRM 1,134
40,000 16 4.80 640,000 0.01 252 FIRM 4,032
80,000 7 2.10 560,000 0.88 504 FIRM 3,528
160,000 2 0.60 320,000 0.50 1,008 FIRM 2,016
320,000 1 0.30 320,000 0.50 2,016 FIRM 2,016
640,000 1 0:30 640,000 1.01 4,032 FIRM 4,032
2,000,000 2 0.60 4,000,000 6.30 12,600 FIRM 25200
4,175,000 1 0.30 4,175,000 6.58 26,269 FIRM 26,269

B) Allocation to Retall Individual Bidders:

This category (net of technical rejections) was over subscribed 45.7160 times. The total number of shares allotted In this category is 1,200,000 Equity Shares. The category wise details of the Basis of Allocation in this category are as under.

Category No. of
Applications
% to Total No. of Equity
Shares
Applied
% to Total No. of Equtly
Shares
Allocated
Ratio Total No. Of
Equity Shares
Allocated
25 23,092 9.46 577,300 1.09 25 1:44 13,125
50 22,290 9.14 1,114,500 2.11 25 1:22 25,325
75 9,197 3.77 689,775 1.3 25 3:44 15,675
100 25,869 10.6 2,586,900 4.89 25 1:11 58,800
125 5,134 2.1 641,750 1.21 25 1 : 9 14,275
150 7,269 2.98 1,090,350 2.06 25 3:22 24,775
175 37,391 15.32 6,543,425 12.36 25 16:101 148,100
200 21,400 8.77 4,280,000 8.09 25 2:11 97,275
225 2,270 0.93 510,750 0.96 25 1 : 5 11,375
250 2,224 0.91 556,000 1.05 25 5 : 22 12,625
275 585 0,24 160,875 0.3 25 1 : 4 3,650
300 2,755 1.13 826,500 1.56 25 3:11 18,775
325 479 0.2 155,675 0.29 25 13:44 3,550
350 983 0.4 344,050 0.65 25 7:22 7,825
375 14,599 5.98 5,474,625 10.34 25 17:50 124,100
400 68,451 28.06 27,380,400 51.73 25 37:102 620,750

C) Allocation to Eligible Employees

This category (net of technical rejections) was over subscribed 3.3783 times. The total number of shares allotted in this category is 200,000 Equity Shares. The category wise details of the Basis of Allocation In this category are as under (Sample):

Category No. of

Applications

% to Total No. of Equity
Shares
Applied
% to Total No. of Equtly
Shares
Allocated
Ratio Total No. of
Equity Shares
Allocated
25 2 0.91 50 0.01 25 FIRM 50
200 21 9.59 4,200 0.62 59 FIRM 1,239
375 2 0.91 750 0.11 111 FIRM 222
500 9 4.11 4,500 0.67 148 FIRM 1,332
650 1 0.46 650 0.10 192 FIRM 192
875 1 0.46 875 0.13 259 FIRM 259
2,150 1 0.46 2,150 0.32 636 FIRM 636
4,200 2 0.91 8,400 1.24 1,243 FIRM 2,486
20,000 12 5.48 240,000 35.52 5,920 FIRM 71,040

D) Allocation to Qualified Institutional Buyers:

Category Financial
Institutiona/Banks
Mutual Funds Foreign Instttutional Investors Insurance Companies VCs
No. of Equity Shares 800,020 1,201,474 - 394,968 3,538

The Refund Orders due to applicants will be dispatched to the address of the investors as registered with the depositories on February 2, 2007. In case the same Is not received within ten days, Investors may contact at the address given below. The Refund Orders have been over printed with the bank mandate details as registered, if any, with the depositories. The Equity Shares allotted to successful applicants are being Credited to their beneficiary accounts subject to validation of the account details with the depositories concerned on February 1, 2007 listing applications will be filed with the BSE and NSE on February 2, 2007 and the Company is taking steps to get the Equity Sham admitted for trading on the BSE and NSE within seven working days from the date of approval of the Basis of Allocation.

Investors Please Note:

The details of allocation made would be hosted on the website of the Registrar to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.com
Further correspondence in respect of allotment of Equity Shares pertaining to the Issue may be addressed to the Registrar to the Issue, Intime Spectrum Registry Limited, quoting ful name of the First/ Sole Applicant, Serial Number of the Bid cum Application Form, Number of Equity shares bid for, Name of the Member of the Syndicate, Place where the bid was submitted and payment details at the address given below:

Intime Spectrum Registry Ltd.,
C-13, Pannalal Silk Mills Compound, L.B.S. Road, Bhandup West,
Mumbai - 400 078, Tel.: (022) 2596 0320 Fax: (022) 2596 0329,
E-mail: gbn-ipo@intimespectrum.com Contact Person: Mr. Salim Shaikh



Place : New Delhi
Date : February 1,2007

For Global Broadcast News Limited
On Behalf of the Board of Directors
Sd/-
Authorized Signatory

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTS OF GLOBAL BROADCAST NEWS LIMITED.

GBN IPO Basis of Allotment FAQs

Check the basis of allotment document above to know about how the shares are allocated in GBN IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).

The GBN IPO basis of allotment (published above) tells you how shares are allocated to you in GBN IPO and category wise demand of IPO share.

Visit the GBN IPO allotment status page to check the number of shares allocated to your application.

Check the basis of allotment document above to know about how the shares are allocated in GBN IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).