Chennai based Midvalley Entertainment, has filed a draft red herring prospectus (DRHP) with SEBI, to enter into the capital market with a public issue of 1.71 crore equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

The issue also comprises a reservation of 3 lakh equity shares for permanent employees, thus bringing the net issue to 1.68 crore equity shares of Rs 10 each. The net issue will constitute 39.30% of the fully diluted post issue paid-up capital of the company.

Midvalley Entertainment is an ISO 9001:2000 certified integrated production, distribution and exhibition company, actively engaged in the media and entertainment industry in South India. The company intends to emerge as one of the leading theatre chain in Southern India. It has currently entered into screening agreements with 85 theatres in distribution territories of Hyderabad and Tamil Nadu.

The company plans to utilize the issue proceeds for general corporate expenses and entering into screening agreements with 300 cinema theatres and up-gradation of
100 cinema halls with digital equipments and other assets.

The equity shares are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Saffron Capital Advisors (P) and Cameo Corporate Services are helping the company in the process of raising funds from the market.