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But Nimbus as of now is a loss-making broadcaster (12/28/2010)'s Deep Eye
But Nimbus as of now is a loss-making broadcaster

Nimbus Communications, which has announced an earth shaking World Series Hockey, is as of now a loss-making broadcaster.

The company has also defaulted inter alia on payments to Punjab National Bank.

However, it is gathered that the company is in the process of coming out with IPO to raise funds to the tune of Rs.900 cr. undefined

From this angle, hockey comes in handy for brand building, and it is heartening for the sport of hockey, it is being construed so by a leading corporates.

The announcement of World Series Hockey could be its image building exercise in the run up to the IPO. This new hockey event announcement may revitalize and expand the company's profile.

Nimbus operates sports channels such as Neo Sports and Neo Cricket.

On a consolidated basis, Nimbus has been consistently making incremental losses and has negative operating cash flows, according to its Prospectus.

It incurred losses of Rs.35.3 crore, Rs.79.71 crore, Rs108.2 crore, Rs.131.71 crore and R.s142.39 crore in the fiscal years 2006 to 2010, respectively, according to the company's prospectus.

According to a report in a Bombay newspaper, the the company has a high debt burden of around Rs579 crore as of March 31, 2010, a chunk of which is secured loans of Rs331.65 crore.

However, it has to mentioned here that the Nimbus has acquired new media rights licenses from the Board of Cricket Control in India for April 2011 to March 2014 for all international matches organised by board in India.

Harish Kanayalal Thawani, Shobha Harish Thawani and Paramount are the promoters of this company

Nimbus has defaulted on repayment of a short-term loan of Rs225 crore provided by Punjab National Bank, which was due for repayment in full on June 30, 2010.

The company got an extension from PNB to pay outstanding of Rs140 crore till December 23, 2010.

Also the bank has not been able to pay the margin money of Rs60 crore to PNB and Union Bank of India, which was due by April 2010.

This lapse or default in repaying debt raises concerns regarding its financial position and this may act against the company in bidding for new sports and broadcasting rights, the company warned in its prospectus.

Therefore, it remains to be seen how the ambitious WSH will be put on the board

It remains to be seen whether hockey improves the image of its neo-promoter Nimbus or the vice-versa happening.

Source: With input from various news items published in the business sections of many newspapers

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by Ajeet Singh on 12/29/2010 4:03:20 AM
The WSH sounds like a great idea and could pull in huge crowds, but after the way the PHL fizzled out and this report of financial difficulties for Nimbus, I'm skeptical about this venture ever taking off. The other reason for being pessimistic is the inevitable clash between Hi & IHF (similar to the ICL & IPL in cricket) and there have been threats from the HI about banning players (who take part in this league) from the national team. Hope it happens and is very successful and we get to see some exciting new talent.

by Editor Arumugam on 12/29/2010 10:34:07 AM
Dear Ajit Ji, I wholeheartedly support this World Hockey Series. For the simple reason, it will be successful as all Indian players are involved in it, our hockey deserves something big like this. Policy of this site is to support any group or organization that organizes hockey on the ground. For the same purpose, i went personally to Bhopal where the IHF held the Nationals, though HI was against it. So, dear friend, am thrilled at the WSH like every other true hockey fan, I join the entire hockey fraternity to pray for WSH's success. However, reporting what is truth is also part of my duty which I did in this write up. I also wish the company comes out with successful IPO, and promote hockey as no other ever did. I also agree ups and downs of companies in their financial matters is a routine, nothing serious. WISH WSH A GRAND SUCCESS.