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HT Media Ltd, publisher of Hindustan Times, on Tuesday fixed a price band of Rs 445-530 for its IPO aggregating 76.91 lakh shares, which will enable the company to raise up to Rs 407.62 crore.
The IPO, comprising a fresh issue of 46.40 lakh equity shares and offer for sale by HPC (Mauritius) Ltd of 23.55 lakh shares, also has a green shoe option of up to 6.96 lakh shares.
The IPO through a book building route will open on August 4 and close on August 10. HT Media vice chairperson Shobhana Bhartia said the proceeds from IPO would fund capital expenditure, brand building and other corporate plans.
The publisher of English daily Hindustan Times and Hindi daily Hindustan will consolidate its business in two-three years before diversifying into TV media, HT media vice chairperson Shobhana Bhartia said.
"It's not that we are not looking at (TV news channel). But next 2-3 years, we will focus on consolidation, after which we will look at opportunities (for starting an electronic news channel)," she said.
However, the company will launch its radio services "right away", the company CEO Rajiv Verma said. HT Media signed a memorandum of understanding with Virgin Radio (Asia) Ltd for its FM radio business in December, 2004.
From the IPO proceeds, HT Media proposes to use Rs 76.48 crore (Rs 764.8 million) for capital expenditure, Rs 76 crore (Rs 760 million) for sales and marketing (Rs 53 crore in 2005-06 and Rs 23 crore in 2006-07) and Rs 10 crore (Rs 100 million) in its FM radio business.
The company also intends to launch a business daily and would take a decision in this regard on the basis of its study of the market, Verma said.
Upbeat about Hindustan Times' entry into Mumbai, Bhartia without naming the rivals exuded confidence that the daily will face the competition successfully.
The Times of India group has launched a daily, Mumbai Mirror in the city, while Dainik Bhaskar and Zee will come out with Daily News & Analysis by the end of July.