Jagran Prakashan Pvt Ltd, publisher of Hindi daily ‘Jagran’, is all set to hit the capital market with its IPO by March-end 2006. The group recently filed the red herring prospectus with Sebi for the public issue of shares up to 1.15 crore, including the green shoe option of up to 15 lakh shares, sources close to the deal informed.
DSP Merrill Lynch Ltd and ICICI Securities Ltd have been appointed as lead managers for the public issue.
The public issue will constitute 20 per cent of the fully diluted post-issue equity share capital of the company, assuming that the green-shoe option is not exercised and 22.33 per cent assuming that the option is exercised in full. The total capital to be raised from the initial issue is pegged at around Rs 300 crore.
The Irish media house, Independent Newspaper & Media Plc, holds 26 per cent in Jagran Prakashan Pvt Ltd, which it acquired early this year for Rs 150 crore.
The group is expected to use the funds from the IPO to upgrade printing facilities and finance new business plans in outdoor media advertising, and event management, including mobile advertising targetted towards rural India. In the last one year, ‘Deccan Chronicle’ and ‘Hindustan Times’ have successfully hit the capital market.