MUMBAI, DECEMBER 13: Despite innumerable risk factors, television content producer Television Eighteen India Ltd is hoping that its maiden Rs 52.84 crore highly priced issue will go through. Managing Director Raghav Bahl said the company had taken care to be transparent and to list all possible risk factors (26 internal to TV-18 and six external).The company's lead managers have recommended a premium of Rs 170 per share for its public issue but the cost of the project for which funds are being raised has not been appraised by any financial institution or bank. ``The company believes that it has professional management which has the expertise to assess the cost of the project,'' the company justifies in its offer document.To make matters worse, the Mauritius subsidiary TEML had total accumulated losses of $ 6,65,893 as on June 1999, although it made a profit of $ 17,762 in 1999. TEML's profitability was affected in 1998 following NBC Asia's merger with National Geographic.The offer document warns:``The Income tax department has made claims of Rs 1.29 crore for the assessment years 1995-96 and 1996-97 on account of disallowance of the company's claim under Section 80 O of IT Act.'' The company justifies that it is contesting the case before the appellate authorities. The company is also waiting for RBI's approval for extending loans to its wholly-owned loss-making subsidiary, TEML.Moreover, company's another affiliate, Entertainment Eighteen India Ltd, has accumulated losses of Rs 17.64 lakh. Studio Eighteen India has made losses of Rs 11.63 lakh as one March 1997 and total accumulated losses as on March 31, 1999 was Rs 35.58 lakh.The company is banking on its tie-up with CNBC Asia but the formalities in connection with the incorporation of the joint venture company between TV18's wholly owned subsidiary TEML ad CNBC Asia are not yet completed, says the offer document. The company plans a public issue of 27,36,000 equity shares of Rs 10 each at a premium of Rs 170 per share, aggregating Rs 49.24crore.
