Media and entertainment company Midvalley Entertainment started the first session on a positive note but rally fizzled out in last one hour of trade today. The stock settled at Rs 58.05, down 17% from issue price of Rs 70 a share on Bombay Stock Exchange.
It has touched an intraday high of Rs 76.50 and low of Rs 55. Traded volume was nearly four times to 3,38,71,723 equity shares as against issue size of 85,71,429 shares.
Chairman, Datuk K Keetheswaran said the company's net profit would grow by 12-15% in FY11. "We will open 200 screens by 2012," he said.
Midvalley is a film production, distribution and exhibition company, actively engaged in the media and entertainment industry in South India. It has presence in the media and entertainment activity from concept to completion i.e. from script to screen. It produces, distribute and exhibit movies both in Indian and foreign languages.
Issue proceeds of Rs 60 crore are proposed to be utilised for entering into screening agreements with 300 cinema theatres. It will be used for renovation and up-gradation of cinema infrastructure with digital equipment and other related assets for a select 100 screens. The proceeds will also be used for acquisition of screening rights of company having similar line, range and objects of business.
