The company received an overwhelming response from investors like foreign institutional investors (FIIs), mutual funds, banks, financial institutions, insurance companies, corporates, high networth individuals etc, the market source said. The cut-off price and allocation would be done by Balaji in consultation with the issue managers within the next two to three days. The bid for the bookbuilding issue closed on October 12 and the fixed priced portion will open for subscription on October 27.

Balaji Telefilms has been promoted by Bollywood star Mr Jitendra. The company enjoys a strong position in the television soap opera and family drama section. Currently, 14 of their 17 programmes on air are in this category. The company is targeting a specific segment like housewifes and this helps advertisers to effectively reach out to their target groups.Focussed on television software production, Balaji is now setting up a Rs 57.4-crore project which has been apprised by Global Trust Bank. The proceeds from the current issue will be used to expand and modernise their production capacities and establish new studios and offices at Mumbai, Bangalore, Calcutta and Chennai.

The company is deploying Rs 8.7 crore in land and building, Rs 6 crore in buildings (leased) and Rs 22.65 crore in shooting and post-production equipment. Of the issue proceeds, Rs 16.05 crore is earmarked for working capital requirements. The project is being financed through the issue proceeds and a term loan of Rs 7 crore from GTB.

Balaji is a leading producer of fiction-based programmes various regional and satellite channels. The company has produced serials like Hum Paanch, Kyunki Saas Bhi Kabhi Bahu Thi, Koshish, Ek Aasha, Bandhan, Kayadaan, Kaaun, etc in Hindi and Pavitra, Bandham, Kulaa Vilakku, Paasamalargal, Anubhandam, Itihaasa etc in regional languages.

Balaji's presence on many channels and in different languages makes its position comfortable since the revenue stream is not dependent on a single channel. However, its presence is limited to a couple of south Indian languages. The company still has to make its presence felt in other programme categories, except for soap operas and family dramas in order to exploit revenues from other categories of viewers.

For fiscal 2000, the company recorded a net profit of Rs 4.28 crore on total income of Rs 20.15 crore. For the first five-month period of the current fiscal, the company recorded a net profit of Rs 3 crore on total income of Rs 13.16 crore.