Deccan Chronicle IPO oversubscribed 5.19 times at close

Deccan Chronicle IPO oversubscribed 5.19 times at close

Author | exchange4media News Service | Friday, Dec 03,2004 7:56 AM

Deccan Chronicle IPO oversubscribed 5.19 times at close

The initial public offer of Deccan Chronicle Holdings Limited comprising 8.01 million shares, which had already been over subscribed within 10 minutes of the issue’s opening, closed equally strongly yesterday, with investors subscribing for more than 5.19 times the shares on offer, claimed an official communiqué.

Response from certain investor segments for a stake in India’s first listed broadsheet newspaper was significant with the retail investors oversubscribing by 7.78 times and the QIBs oversubscribing by 4.78 times.

The final share allocation and pricing is getting determined through the book-building route with the company-determined price band of Rs 162 to Rs 194. At this price, the IPO is expected to yield between Rs 130 crore and Rs 155 crore to the print major. The final price of the IPO will be announced today.

Deccan Chronicle has appointed ICICI Securities as the Book Running Lead Manager to the issue. In order to operate a post-issue price stabilisation, the issue has a Greenshoe option (allowing the underwriter to buy a new issue to buy and resell additional shares) of 1,201,960 equity shares and ICICI Securities has been appointed as the stabilisation agent in this regard. The issue constitutes approximately 20 per cent of the fully diluted post-offer paid-up capital assuming that the Greenshoe Option is not exercised, and approximately 22 per cent assuming that the option is exercised in full.

Deccan Chronicle is the predominant English newspaper in Andhra Pradesh – both in terms of circulation and readership. As per the shared proposals, the capital raised by the issue will be used for financing new printing facilities and for venturing into new territories and future strategic initiatives and acquisitions. The company has announced that it will be launching Deccan Chronicle in Tamil Nadu shortly.

Tags: e4m

Write A Comment