Bharatiya Global Infomedia slumps on debut

Settles at Rs 30.95 on BSE

Shares of Bharatiya Global Infomedia settled at Rs 30.95 on BSE, a 62.25% discount to the initial public offer price of Rs 82. The stock debuted at Rs 84, a premium of 2.44% over the initial public offer (IPO) price. The stock hit a high of Rs 84 and low of Rs 27.15. On BSE, 4.07 crore shares were traded on the counter.

Bharatiya Global Infomedia's IPO closed on 14 July 2011. The company had priced the IPO at the top end of the Rs 75-Rs 82 per share price band. Retail investors category was subscribed 5.06 times followed by non-institutional investors category with 1.94 times. However, qualified institutional investors avoided the issue by putting no bids.



The company's business operations consist of IT-based solutions and digital post production studio. Under the IT division, the company offers products and services to provide automated solution that help enterprises to meet the challenges of making IT infrastructure secure and compliant.

The media and entertainment division has a digital post-production studio, known as BGIL Studio, at Andheri (West), Mumbai. It is an integrated end-to-end film post-production and visual effects services house. It offers services ranging from visual effects, digital film lab (digital intermediate, high-resolution film scanning and film recording) and editing and motion control to high-definition production.

Bharatiya Global intends to utilise the proceeds from the IPO to set up offices in Noida and Mumbai, for expansion of research and development (R&D) technology centre, for repayment of bank borrowing, to meet long term working capital requirement, and for upgradation of digital post production studio.

Bharatiya Global Infomedia reported a net profit of Rs 4.55 crore on net sales of Rs 71 crore for the year ended March 2011.