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DB Corp IPO oversubscribed by 39.3 times; raises Rs 336-385 cr from the market

16-December-2009
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DB Corp IPO oversubscribed by 39.3 times; raises Rs 336-385 cr from the market

DB Corp Ltd, the publisher of Hindi daily Dainik Bhaskar, Gujarati daily Divya Bhaskar, Hindi business daily Business Bhaskar and My FM radio services, closed its IPO on December 15, 2009. The group’s IPO was oversubscribed by 39.6 times, thus showing the rejuvenation of the primary market and the confidence placed by the investors in the company.

The IPO was set at a price band of Rs 185-Rs 212 per share with an offering of 1.8 crore shares. Based on the price band, Rs 336-385 crore has been raised from the market.

The money raised will be used to consolidate the group’s position in existing markets by upgrading infrastructure and also to expand to new geographies. It plans to utilise Rs 110 crore to repay debts.

The company focuses on Tier II and Tier III cities, where consumption is growing at a faster pace and is higher than the Tier I towns. There is a tremendous shift in the advertising pie in print, whereas in 2003 regional media used to account for 40 per cent of the share, in 2008 it rose to 54 per cent.

The whole IPO has been managed by Concept Communications, while the TVC and the corporate ads have been created by Euro RSCG. The campaign worked primarily to build in the association of DB Corp with the brands it has. And the growth story of the group was the main focus of the communication.

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