Follow Us
01
MUMBAI: DB Corp Ltd, publisher of Dainik Bhaskar, has fixed its initial public offering (IPO) price band at Rs 185-212 per share.
DB Corp will be able to raise Rs 3.85 billion at the upper and Rs 3.36 billion at the lower price band.
DB Corp will hit the capital market on 11 December with an IPO of 18.17 million equity shares (of Rs 10 each). The issue closes on 15 December.
The offer will see a 10 per cent dilution in the post-issue capital of the company, DB said Wednesday.
The issue consists of about 70 per cent (or 12.72 million) fresh equity shares, while the remaining 5.45 million are offered by Cliffrose Investments Ltd, a Warburg Pincus affiliate that holds 7.14 per cent stake in DB Corp.
Promoters will dilute 6.52 per cent stake while Cliffrose Investments will hold 3.64 per cent stake after the issue.
As reported by Indiantelevision.com, DB Corp intends to utilise Rs 2.70 billion out of the proceeds of the issue for funding its expansion and repaying its debt.
This includes Rs 600 million for setting up new publishing units, Rs 305 million for upgrading its machinery, Rs 501 million for sales and marketing and Rs 200 million for reducing working capital loan. The company will also pre-pay existing term loans to the tune of Rs 1.10 billion.
DB Corp publishes seven newspapers across 11 states, including Dainik Bhaskar in Hindi and Divya Bhaskar in Gujarati. It also operates 17 FM radio stations.
The book running lead managers to the issue are Citigroup Global Markets India, Enam Securities and Kotak Mahindra Capital Company. Karvy Computershare is the registrar.
