A film production company

Midvalley Entertainment (MEL), engaged in the media and entertainment industry in South India, has filed its DRHP with Sebi on October, 29^th 2008, to enter the capital market with an IPO of 1.71 crore equity shares of Rs 10 each at a price to be determined at a later stage through the 100% book building process.

The issue comprises a reservation of 3 lakh equity shares of Rs 10 each to the employees of the company and a net issue to the public of 1.68 crore equity shares of Rs 10 each.

The issue will constitute 39.30% of the fully diluted post issue equity share capital of the company.

The company proposes to list its shares on BSE and NSE and the BRLM to the issue is Saffron Capital Advisors.

The objects of the issue are to part finance the company's requirement of capital for entering into screening agreements with 300 cinema theatres and upgradation of 100 cinema halls with digital equipments and other assets.

Out of the proceeds of the issue, the company proposes to utilize Rs 42.73 crores to part finance the screening and upgradation agreement which the company proposes to enter into with.

screening agreements with 85 theatres in distribution territories of Hyderabad and Tamil Nadu and is in the process of entering into similar agreements with more such screening agreements. Total number of seats available in these 85 theaters is about 43,994 seats.

To complement exhibition and the production and to have presence across all segments, the company distributes movies from all banners and production houses. Further it has a library of 651 movies in various languages. This consists of 417 Tamil movies, 107 Telugu movies, 52 Kannada movies and 75 Malayalam movies.

The company set up a subsidiary in UK for entertainment business viz Midvalley Entertainments, UK in 2005 which further had 2 subsidiaries namely Camera Lights Action UK and Private Moments, UK. However it sold all the aforesaid subsidiary companies to Infofusion Solutions Private Limited in May, 2006. As on date the company has no subsidiaries.

For the year ended 30.4.2008, the company posted total income of Rs 74 crores and net profit of Rs 9 crores as against an income of Rs 49 crores and net profit of Rs 7 crores for the year ended 30.4.2007.