Raj Television Network Plans fund raising via PE route

Raj Television Network jumped 9.29% to Rs 107.05 at 11:19 IST on BSE on reports the company is looking to raise funds from private equity firms.
The stock hit a high of Rs 114 and a low of Rs 100 so far during the day. The stock has a 52-week high of Rs 254.65 on 11 September 2007 and a 52-week low of Rs 85.60 on 2 July 2008.
The company’s current equity is Rs 12.98 crore. Face value per share is Rs 10.
The current price of Rs 107.05 discounts its Q1 June 2008 annualized EPS of Rs 17.26, by a PE multiple of 6.20.
As per reports, Raj Television Network (RTNL) plans to enter the print business and is open to acquiring an existing Tamil-based newspaper.
The company is looking to raise Rs 50-100 crore from private equity firms by diluting its 5-10% stake. The funds will be used to build a studio, office complex and for film production business. Promoters hold 72.48% stake in the company (as at end June 2008).
RTNL recently entered the film production business and is producing three movies, including one set to be released by end-October 2008. Initially, the company will start with low budget movies.
RTNL is an established television broadcasting company in south India. It has the largest movie database in Tamil Nadu owning rights for Tamil films ranging from old classics to recent blockbuster films.
The company reported 7.90% rise in net profit to Rs 5.60 crore on 15.70% rise in net sales to Rs 17.50 crore in Q1 June 2008 over Q1 June 2007.