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Lokmat Group plans IPO to fund expansions

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Lokmat Group plans IPO to fund expansions

Mumbai-based media house Lokmat Media Ltd, publisher of Marathi daily Lokmat, is all set to enter the capital market to raise funds for its expansion plans. The company has filed draft papers for an initial public offering (IPO) of 13,829,064 equity shares of Rs 10 each for cash to existing equity shareholders of the company. The equity shares are proposed to be listed on the Bombay Stock Exchange (BSE).

The Group, which also operates Marathi news channel IBN Lokmat jointly with IBN18 Broadcast Ltd, will utilise the net proceeds on capital expenditure for upgrading existing printing facilities, building capability for expansion to new markets, brand building, promotion and marketing, pre-payment and repayment of loans, acquiring and co-producing Indian films, including primarily Marathi language films as well as certain Hindi language films, investment in IBNL, and general corporate purpose.

As per the draft Red Herring prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI), the company will be offloading 25 per cent stake through the IPO. However, the exact amount to be raised has not been revealed. Apart from a news channel and Lokmat newspaper, the Group publishes two more newspapers – Lokmat Samachar (Hindi) and Lokmat Times (English).

Kotak Mahindra Capital, Enam Securities and Link Intime (India) are assisting the company in the process of raising funds from the market.

For record, in July 2010, Hindustan Media Venture Ltd (HMVL) of the Hindustan Times Group had raised Rs 270 crore through an initial share sale. Also, another media group, DB Corp Ltd, had come up with an IPO at the end of 2009, which was oversubscribed by 39.3 times.


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