Prabhat Khabar is looking for investors to meet its expansion plans. The Hindi daily is looking at divesting a portion of its stake to fund the expansion. However, it is not known what percentage of its stake the company would be offloading.
The company has appointed merchant bankers in Edelwiess to help find a financial partner and evaluate the offers. The group refrained from disclosing the names of the potential investors to whom it is in talks with. It may be noted that Edelwiess was the advisor to Vijay Karnataka on its deal with TOI.
It is also learnt that the enterprise valuation of the company is between Rs 100 crore and to Rs 120 crore. Amar Ujala, TOI, HT, Dainik Jagran, Dainik Bhaskar and couple of foreign players have evinced interest and a process of due diligence is under way as some of the players have put in financial bids.
When contacted, K K Goenka, Vice-president, Prabhat Khabar, said, “We are looking for capital and it could be in the form of FDI. We need funding to remain in the market, which has become so fiercely competitive. Hence, we need capital in whichever form that is available to finance our expansion.”
Goenka made it clear that the paper was looking at multiple options to meet its expansion plans, which would be to the tune of Rs 50-60 crore. As part of its expansion, the group is looking at launching more editions from Jharkhand. Plans are also afoot to relaunch its Patna and Deoghar editions. Moreover, the group also has plans to launch radio stations as it has won radio licenses for Jamshedpur and Ranchi.