DB Corp IPO price band fixes at Rs 185-212/sh
Publisher of Dainik Bhaskar, DB Corp is coming out with an initial public offering (IPO) of 18,175,000 equity shares of Rs 10 each for cash aggregating up to Rs 385.31 crore. The company has set its IPO price band at Rs 185-212 per share and the issue will be opened during December 11-15, 2009 for subscription.
The issue consists of a fresh issue of 12,725,000 equity shares by the company and an offer for sale of 5,450,000 equity shares by Cliffrose Investment Ltd, a Warburg Pincus affiliate. The issue shall constitute up to 10.01% approximately of the fully diluted post-issue capital of the company.
Promoters will dilute 6.52% stake to 92.86% and Cliffrose Investments will hold 3.64% stake after diluting 3.5% via this issue.
The company is in the business of print media, and publishes 7 newspapers, 48 newspaper editions and 128 sub-editions in three languages (Hindi, Gujarati and English) across 11 states.
Its flagship newspapers, Dainik Bhaskar, Divya Bhaskar and Saurashtra Samachar, have a combined average daily readership of 15.5 million readers (Source: the Indian Readership Survey (“IRS”) Round 1 2009 (IRS 2009)).
The objects of this issue are to raise funds for (i) setting up new publishing units; (ii) upgrading existing plant and machinery; (iii) enhancing brand image through sales and marketing; (iv) reducing existing working capital loans and (v) prepaying existing term loans.
For the year ended March 31, 2009, it reported profit after tax of Rs 68.56 crore on total income of Rs 932.43 crore. For the period of April-September 2009, it posted profit after tax of Rs 104.06 crore on total income of Rs 507.39 crore.
The equity shares are proposed to be listed on the BSE and NSE. The book running lead managers to the issue are Citigroup Global Markets India Pvt Ltd, Enam Securities Pvt Ltd and Kotak Mahindra Capital Company Ltd. Karvy Computershare Pvt Ltd is the registrar.
