Hindustan Media Ventures Ltd is entering the capital market on July 5, 2010, with a public issue of equity shares of Rs 10 each for cash at a price (including a premium to be determined through a 100 per per cent book building process) aggregating up to Rs 2,700 million. The price band has been fixed between Rs 162 and Rs 175 per equity share. The issue closes on July 7, 2010.
The equity shares offered through the Red Herring prospectus are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The book running lead managers are Edelweiss Capital Ltd and Kotak Mahindra Capital Company Ltd.
In an earlier interview with exchange4media, Benoy Roychowdhury, Executive Director, Hindustan, had said that they were planning to raise around Rs 300 crore through this IPO. The money raised from the IPO would be used to clear company’s liabilities (around Rs 135 crore), while the rest would be kept aside for investment purpose.
Hindustan is the third largest daily newspaper in India with a readership of 9.3 million (Source: IRS, R2 2009). Hindustan Media Ventures Ltd also publishes two Hindi magazines – children’s magazine ‘Nandan’ and ‘Kadambini’, a general interest magazine.