Foreign institutional investors (FIIs), mutual funds, banks, financial institutions, insurance companies, corporates, high networth individuals, etc., have subscribed to Balaji shares offered through bookbuilding.

However, it remains to be seen how small investors will respond to the IPO considering that stock market is dancing to the tunes of bears. It may be recalled that several companies which received overwhelming response to their bookbuilding portion have recently struggled to attract small investors.

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 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.