The New Delhi-based HT Media is all set to launch its maiden public offering on Thursday.
"Accessing the capital markets will ensure greater accountability to our investors and help in building HT Media is a leading media company both in terms of quality and size," Shobhana Bhartia, vice chairperson, HT Media said. The company hopes to raise more than Rs 400 crore (Rs 4 billion) through the initial public offering.
The second-largest print media company in the country will offer a fresh issue of 46.40 lakh shares in addition to 23.55 lakh shares on sale by the Mauritius-based HPC of Rs 10 each at a premium to be decided through the book-building process. Price band for the offer is Rs 445 at the lower end of the band and Rs 530 at the higher end.
There is also a greenshoe option of up to 696,000 shares. If the option is exercised, the aggregate offer would be 76.91 lakh (7.7 million) shares. The issue, without the greenshoe option, would constitute a 16.33 per cent stake of the company.
Justifying the premium on the HT Media stock, Bhartia stated that investors could definitely look forward to profitable returns. The funds so raised would be used to meet the company's capital expenditure, brand building and the new media initiatives.
HT Media publishes The Hindustan Times in five editions. It has recently commenced its sixth edition from Mumbai. The company stated that it has received an encouraging response in Mumbai. It has earmarked Rs 50 crore (Rs 500 million) for the Mumbai expansion project. Currently, the Delhi market is the cash cow for the company.
It also publishes a Hindi newspaper Hindustan and two Hindi magazines - Nandan and Kadambini.
The company hopes to consolidate its media business in Delhi and Mumbai and expand in the Hindi territories of Madhya Pradesh, Uttar Pradesh and Rajasthan. Bhartia added the company was also looking at publishing of vernacular editions of the newspaper.
The company has tied up with Richard Branson promoted Virgin Radio for private FM radio services and will be a part of the bidding process for fresh private FM licenses.
