Cinemax to enter capital market with IPO

MUMBAI: Cinemax India Ltd has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for its proposed Initial Public Offering (IPO).

Plans are to use the proceeds from the IPO to meet the capital expenditure to be incurred for setting up screens across India. Apart from the expansion funding, the proceeds will be also be utilised for general corporate purposes including acquisitions.

For the year ended 31 March, 2006, Cinemax clocked a total income of Rs 438.60 million on a standalone basis with a net profit of Rs 67.64 million.

Cinemax is part of the Kanakia Group, which has a track record of over 20 years in real estate development. The group has developed over five million square feet of residential and commercial real estate.

Cinemax has 10 operating properties in India with 33 screens with a capacity of 9,316 seats.