Indian IPO

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Friday, December 14, 2007

Dainik Bhaskar likely to raise Rs 1,000 cr via IPO: Sources

Dainik Bhaskar is likely to raise about Rs 1,000 crore via an IPO, reports CNBC-TV18 quoting sources. The Dainik Bhaskar issue is likely in the month of February and they will file the Draft Red Herring prospectus, or DRHP, with Sebi soon.

This could be the next big media company tapping at the IPO market, reports CNBC-TV18’s Nimesh Shah quoting unnamed sources. Shah has learnt from sources that Dainik Bhaskar is close to filing the DRHP with Sebi in the days to come and that Citi, Kotak and Enam are the lead managers to the issue. They are likely to get close to Rs 1,000 crore via a 10% dilution.

The size of the issue and dilution has not yet been confirmed by any of the investment bankers but according to Shah, they are looking at tapping the market. That probably is the reason why some sort of excitement has been seen in the print media, be it Jagran Prakashan or HT Media which were both up 9% each yesterday, and even Deccan Chronicle, Shah said.

The valuation, at what they have been talking about, is higher than all these listed companies in that space. That could probably be a big trigger for all these listed companies as well.

Though Shah wasn’t able to get an official word from the management, what he has learnt from investment banking sources is that Dainik Jagran is close to filing the DRHP.

Incidentally, in early 2006 Warbus Pincus had picked up a 7% stake and at that point in time the company was valued close to Rs 2,100 cr odd. It’s been a four-times jump in the valuation for the company. However, investors will have to wait and watch for how big the issue is.

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