Query: I got the allotment of 300 shares of Raj Tv in it's IPO. Why Raj TV stock is not performing the market.? K.Vishnu, Bangalore
hebullishtrends: Raj TV shares are trading at Rs.103. It is true that Raj TV has disappointed the investors since it has came for IPO. Having sound infrastructure and film rights and also having strong political support from DMK Party, once or twice the stock price has gone to Rs.275 this is due to Mr.Maron resignation and the TN ruling party has closely associated with Raj TV, hence speculators have taken the advantage and they have taken the large positions and lost the money in the game.
Very recently the company has announced the utilisation IPO funds report. As per this Raj Television Network Ltd has informed BSE that "Against the total projected utilization of Rs 52.81 Crores upto June 30, 2008 from the IPO funds, an amount of Rs 25.06 Crores has been utilized towards Acquisition of contents and strengthening facilities, purchase of new equipment and up gradation of existing equipment, Launching of New Channels, Acquisition and export of Films and general corporate purpose. The balance proceeds from IPO after meeting the IPO expenses, pending utilization have been invested in Fixed Deposits with Banks."
We are not expecting any immediate returns from this counter as the ocmpany has reported loss in the last quarter of 07-08.
