afaqs!

Hindi business arm of HT Media files for an IPO

By afaqs! news bureau , afaqs!, New Delhi | In Media Publishing | March 08, 2010
Hindustan Media Ventures aims to raise Rs 300 crore through the IPO

HT Media Ventures, the Hindi news business of HT Media, filed for an initial public offering (IPO) on Friday, March 05.

& #BANNER1 & #

HT Media, in a statement to the Bombay Stock Exchange (BSE), informed that Hindustan Media Ventures, which is a subsidiary of the company, has filed a Draft Red Herring Prospectus (DRHP) with SEBI. Its proposed initial public offering is of equity shares of Rs 10 each for cash at a price including share premium, aggregating up to Rs 300 crore.

In November last year, HT Media hived off its Hindi news business; as per the de-merger, HT Media offloaded its Hindi daily, Hindustan, along with two Hindi magazines, Nandan and Kadambini, to Hindustan Media Ventures. The hive-off also included the web portals of the three brands.

Earlier, HT Media had approved the sale or transfer of the Hindi business undertaking on the book value, as on November 30, 2009, for a lump-sum cash consideration of Rs 149 crore, including networking capital of Rs 24 crore.

The Hindi business of the group contributes to a third of the total revenue of HT Media's publications put together. The group's vernacular business has witnessed growth of 25-30 per cent, and the company is hopeful that the number would grow further.

The day HT announced the RHP, HT Media's stock were up by Rs 2.35, closing at Rs 147.90, a 1.61 per cent jump. The stock hit an intra-day high of Rs 150 and low of Rs 145.10.

For the record, HT Media owns the English newspaper, Hindustan Times and the financial daily, Mint, apart from the four FM radio stations and a job portal.