Promoted by Jayantilal Gada, PEN is planning an IPO sometime in August-September this year to finance its acquisition of various Hindi film rights, launch of a music channel, working capital requirements and normal capital expenditure. The size of the IPO may be around Rs 50 crore, according to merchant banking sources.

The company will be launching the proposed music channel under the name, PEN Music Channel, in the near future. The forward integration, according to the company, fits well within its current operation. PEN has recently acquired video and TV rights for the super hit film, Kaho Na Pyar Hai.

PEN, a number one content provider of Hindi feature films both in terms of quality and quantity, supplies films to both government-owned Doordarshan and private channels like ZEE, Sony and Sahara TV. PEN has a big library of more than 2000 Hindi feature films (which has a good repeat value) for various electronic media like television, cable, audio, video, satellite and negatives. According to the company, PEN was the first to venture into the high potential area of Internet rights.

PEN is the market leader with regard to supply of satellite rights and the company and NFDC are the only major owners of Hindi feature film rights for terrestrial (DD) telecast.

The company has also produced selective films like Sauda with Sudhakar Bokade, Lal Badshah (starring Amitabh Bachchan and Manisha Koirala) with KC Bokadia and Kohram (Amita Bachchan, Nana Patekar and Tabu) with Mehul Kumar. At present, six films are under production and some of them are Sharaarat, Mere Apne and Dil Ke Peche. The company has TV serials on air such as Raja Aur Rancha and has mega serial projects on hand (Samrat Ashok and Buddha). PEN has also acquired world rights in all languages (except south Indian) for Sampoorna Ramayana.

A zero debt company, PEN has recorded a net profit of Rs 2.66 crore on turnover of Rs 15.18 crore for the year ended March 31, 2000. For the year ending March 31, 2001, the company projects a sharp turnaround in its performance. The company expects to record a net profit of Rs 6.45 crore on turnover of Rs 54.8 crore. The company has a networth of Rs 25.89 crore.