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Creative Eye to go public on July 20

Creative Eye Ltd., the television software production house promoted by Dheeraj Kumar, is coming out with an initial public offering on July 20. The IPO will be of 25,02,400 equity shares having face value of Rs. 10 each.

While talking about Creative Eye’s decision to come out with a public issue, Dheeraj Kumar, Delhi said, "The biggest beneficiary of entertainment boom are the production houses producing high quality television content. With the rising number of television channels and opening up of overseas market for Indian programming due to a large and growing NRI population abroad, the dem-and for quality Indian programming is increasing at a rapid pace."

He said that Creative Eye was entering the market to part finance the expansion plan that includes the upgradation of post production studio, acquisition of television software including Hindi films, acquisition of rights/commercial time on TV channels, expansion of advertisement division, and developments of various portals planned by the company.

Dheeraj Kumar also informed that over the next four years, demand for new television software was expected to grow from the present Rs. 670 crore to over Rs. 1690 crore.

Creative Eye, which has a very strong presence on Doordarshan, is now planning to move onto satellite channels with its programming. Said Dheeraj Kumar, "While working with satellite channels, we will retain the broadcasting rights for our serials and will have a revenue sharing arrangement."

The company has several new projects in the pipeline. This include Jap Tap Vrat, a mythological to be aired on DD-1 from August, every Sunday at 9.00 a.m. and Safar Filmi Comedy Ka, a film-based comedy programme to be aired on DD-1.

D. Das, elder brother of Dheeraj Kumar and senior executive of the company while talking to Screen said, "We have negotiated with Star and Zee recently. For Zee, we are making a mythological Jai Jai Shree Ganesh and a daily soap. With Star we are negotiating for four serials. We have six proposals for new serials with Doordarshan."

For the year ending March 31, 2000, Creative Eye achieved a total income of Rs. 49.77 crore and a profit after tax at Rs. 2.85 crore. For the year ending 2001, it projects a total income of Rs. 93.35 crore and a profit after tax of Rs. 7.76 crore.

After the public issue, the promoters (Dheeraj Kumar & Company) will hold 56 per cent, TCW/ICICI will hold 14 per cent and the public holding will be 27 per cent. The balance three per cent is meant for the employees of the company.

Amitabh Parashar