Inox Leisure, the equity name in multiplexs

Televisionpoint.com Correspondent
Inox Leisure has entered the market on January 27, 2006 with a bookbuilding public issue of 16.5 million equity shares (Rs 10 FV) comprising an offer for sale of 4.5 million shares by the promoter group. The price band is Rs 100 to 120 per share, yielding a maximum issue size of over Rs 198 crore. ILLs shares will be listed at the NSE and BSE.

Engaged primarily in the business of film exhibition through multiplexes which it operates under the brand name of Inox across seven cities, ILL is raising funds to set up multiplexes across new geographies. The company will a proposed multiplex in Darjeeling by the end of February 2006 and its multiplex at Diamond City, the multiplex project in north Kolkata would be completed by mid-2008.

According to Manoj Bhatia, the CEO of the company, it enjoys an early mover advantage in this relatively nascent industry as far as a national presence is concerned. Its resultant benefits include better leveraging abilities, marketing muscle and economies of scale. We will have three screens at that multiplex and a seating capacity of 811 for the rink mall in Darjeeling.

The financials appear satisfactory with the PAT standing at Rs 9.7 crore for HY06, though debtors aggregate Rs 3 crore. Another concern area could be its deferred tax liability which will come home to roost in the years ahead. The parentage of Gujarat Fluorochemicals helps, notwithstanding their offering shares alongside the public issue. Overall then, it is even-stevens upto this stage.