Bollywood Trade News Network

Cinemax India Ltd, one of the largest exhibition theatre chains in India operating 10 properties with 33 screens and 9,316 seats has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for its proposed Initial Public Offering (IPO).

Cinemax is part of the Kanakia Group, which has a track record of over 20 years in real estate development. The group has developed over 5 million sq. ft. of Residential and Commercial real estate.

For the year ended March 31, 2006, Cinemax clocked a total income of Rs. 438.60 million on a standalone basis with a Net Profit of Rs. 67.64 million.

Cinemax proposes to use the proceeds from the IPO primarily to meet the capital expenditure to be incurred for setting up screens across India. Apart from the expansion funding, the proceeds will be also be utilized for General Corporate Purposes including Acquisitions.