MUMBAI: Cinemax India on Wednesday announced its forthcoming IPO for a price band of Rs 135 to Rs 155 for 8,920,000 equity shares of Rs 10 each.

The IPO comprises a fresh issue of 7,000,000 equity shares and an offer for sale of 1,920,000 equity shares by selling shareholders. The issue opens on 18 January and closes on 24 January 2007.

60,000 equity shares of Rs 10 each will be reserved for subscription by company employees. The net issue, which is the rest of the equity offered to the public, will constitute 31.86 per cent of the fully diluted equity share capital of Cinemax India.

“The capital raised from the issue will be deployed to set up several theatres in various locations across India, concentrating primarily in western and northern India. By 2009 Cinemax will add 141 screens in 42 properties across India,” says Cinemax chairman Rasesh Kanakia.

The shares will be listed on The Bombay Stock Exchange as well as the National Stock Exchange.

Kanakia ventured into the exhibition business in 1994 and currently, his Cinemax chain of cinemas operates in Mumbai and Nashik cities in Maharashtra, with 10 properties. It is the third largest multiplex chain in Maharashtra with 33 screens, claims the company.