Success story: BAG Films public issue oversubscribed six times

By Our Markets Bureau | 13 Sep 2003

New Delhi: BAG Films' initial public offering (IPO) of 1,48,60,000 equity shares of Rs 2 each for cash at a premium of Rs 8 per share, aggregating Rs 14.86 crore, which opened for subscription on 6 September 2003 and closed on 11 September 2003, has received over 22,000 applications for more than 850 lakh equity shares of an aggregate value exceeding 21.25 crore. The public issue is subscribed over six times.

BAG Films is promoted by Anurradha Prasad, managing director, a leading media personality, and Rajeev Shukla, director, a senior journalist and well-known personality in the media industry and a member of parliament (Rajya Sabha).

BAG Films is a profit-making company since inception and has paid continuous dividends in the preceding five years. For the year ended 31 March 2003, BAG Films achieved a post-tax net profit of Rs 266.39 lakh on a turnover of Rs 1,586.65 lakh, up from Rs 74.07 lakh last year, reporting an increase of 259 per cent.

At present, BAG Films is mainly into producing TV software for various channels in India. Currently, the following programmes produced by BAG Films are on air: Kumkum — Pyara Sa Bandhan and Hai Na Bolo Bolo on Star Plus; Haqeeqat on Sahara TV; Rozana and Khaberein Bollywood Ki on DD Metro; Poo Villangu on Vijay TV; Red Alert and Mera Goan Mera Desh on Star News; and Gramin Bharat for the union ministry of rural development (Doordarshan, on all regional channels).

Haqeeqat, produced for Sahara TV, won two awards at the Indian Television Awards 2002 for Best Director and Best Screenplay.