Share price climbs 29% in first-day trading
NEW DELHI — Indian producer-distributor UTV Software Communications made a strong showing in its first day on the Mumbai Stock Exchange on Thursday, closing at 168 rupees ($3.85), 29% higher than its initial public offering price of $3.
The IPO raised $21 million through an issue of nearly 7 million shares, representing 34.1% of UTV’s post-issue equity capital.
Proceeds will be used to improve UTV’s production facilities and offices in Mumbai, fund post-production expansion and investin film production and distribution.
Earlier this month UTV bought distrib rights for more than 135 films from Miramax for 10 years in a deal industry sources pegged at between $800,000 and $1 million.
Last month movie arm UTV Motion Pictures inked a deal with Japanese Entertainment Farm to co-produce Mira Nair’s next film, “The Namesake,” an adaptation of the Jhumpa Lahiri novel. While the $9.6 million project will be distribbed worldwide by Fox Searchlight, India will be handled by UTV.