DB Corp will list its equity shares issued via public issue on January 06, 2010. It has fixed the issue price at Rs 212 per share for its IPO of 1.81 crore shares. This IPO received overwhelming response from investors and saw highest subscription among the IPOs of 2009.
The issue was subscribed 39.54 times on the back of support from qualified institutional investors (QIBs). QIBs’ reserved portion was subscribed 68.5 times followed by non-institutional investors with their portion being subscribed 26.17 times. Retail investors’ portion was subscribed just 3.42 times. Enam Securities, one of the book running lead managers, garnered 50% of QIB book.
The price band for the issue was at Rs 185-212 per share and the issue was opened during December 11-15, 2009. The issue constituted about 10% of the fully diluted post-issue capital of the company. About 7% of the issue was a fresh offering, while the remaining 3% constituted an offer for sale by Cliffrose Investment Ltd, an affiliate of private equity firm Warburg Pincus.
The company intends to use the proceeds of the issue for expanding and strengthening its existing markets, launching publications in new markets and upgrading its existing machinery in some centres, apart from repayment of its term loans.
DB Corp publishes 7 newspapers, 48 newspaper editions and 128 sub-editions in three languages (Hindi, Gujarati and English) across 11 states. It is one of the leading print media companies of India, with an impressive footprint, circulation and readership. Its strengths lies in strong established brands in Indian Print media businesses, geographical reach and leadership in markets.
Enam Securities Private Limited, Citigroup Global Markets India Private Limited, and Kotak Mahindra Capital Company Limited were the Book Running Lead Managers to the issue.
Source: moneycontrol.com
