DB Corp, owner of regional daily Dainik Bhaskar, I Media Corp Limited and Synergy Media (which runs MyFM) appears to have investors clambering for its stocks with the issue being subscribed 39.54 times over in the open market.
The company recently rejigged its plans for an IPO, reducing the number of equity shares it was selling from 24.78 million to 18.2 million, but this includes the anchor investor portion of 3.27 million equity shares. The total issue size was 14.9 million shares and the bids received went to 589.28 million. The number of bids received at cut off price was 16.92 million.
The face value of the shares was Rs. 10, they were be priced at Rs. 185- Rs. 212 and the offer would last between December 11 to December 15. The issue constituted 10% of the group’s paid-up capital as opposed to the previous calculation of 13.65% – what could be the reason for this change to the draft herring prospectus?
DB Corp owns 7 newspapers and 5 periodicals in three languages – Hindi, Gujarati and English; its flagship newspapers are Dainik Bhaskar, Divya Bhaskar and Saurashtra Samachar. In addition it has an agreement with Diligent Media Corp Ltd (DMCL), the owner of English news daily DNA to print, edit, publish, circulate, and market the paper in Gujarat and Rajasthan. For an extensive report on the company’s subsidiaries and their performances, read our previous post Dainik Bhaskar IPO Filing: Digital Kiosks; IndiaInfo.com; I Media Corp.
The company will invest the funds in establishing two new publishing units, upgrading its existing plants and repaying Rs. 1.1 billion in loans.