Hindustan Media Ventures IPO to be priced at Rs162-175

The initial public offer of Hindustan Media Ventures Ltd, the publisher of Hindi daily Hindustan, will be priced at Rs162-175 per share, the company said on Thursday. The IPO, through which the media house plans to raise up to Rs 270 crore, will open on 5 July and close on 7 July.

Hindustan Media Ventures is promoted by HT Media Ltd, the publisher of leading English daily The Hindustan Times and the business paper Mint. HT Media will be diluting up to 23-per cent of its holding in its subsidiary the IPO.

The company intends to utilise the IPO proceed for its expansion plans. It plans to utilise Rs135 crore, or half of the funds raised, for prepayment of loans; Rs66 crore for setting up new units; and Rs55 crore for upgrades, it said in its red herring prospectus.

The IPO is based on 100-per cent book building process. Shares offered through the IPO are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange.

Edelweiss Capital and Kotak Mahindra Capital Company are the book running lead managers to the issue.

After three years of being in the red, HMVL reported a net profit of Rs45 crore on revenues of Rs439 crore in the fiscal year ended 31 March 2010. Its revenue has been growing at a compounded annual rate of 26 per cent for the past three years, while advertisement revenues outpaced the overall growth at an industry record of 33 per cent per year over the same period.