Hindustan Media Venture Ltd (HMVL) witnessed a strong listing on Wednesday, with the company’s share price closing at Rs 191.50, a premium of 15.4 per cent to its allotment price of Rs 166 per share.
HMVL is a subsidiary of HT Media Ltd, the company that owns this newspaper.
As soon as the listing bell rang at the National Stock Exchange on Wednesday, the scrip saw its opening price at Rs 177.95, a premium of 7.2 per cent over the allotment price.
It grew stronger during the day with demand rising for the share as investors bet on the newspaper’s strong presence in the Hindi heartland for future growth.
The successful listing of HMVL overflowed onto HT Media that saw a rise of almost 4 per cent to close at Rs 165.20.
“Economic growth in key Hindi-speaking states is rising with growing literacy,” said Rajiv Verma CEO and director at HT Media. “Thus readership as well as the advertising and circulation revenues will rise.”
HMVL that publishes and prints the Hindi daily Hindustan, got a strong response to its IPO from investors. The Rs 270 crore issue was oversubscribed by 4.9 times — while the QIP portion received subscription of 9.24 times, the anchor and non-institutional investors portion was oversubscribed by 1.7 and 3.5 times respectively.
Hindustan has a readership of 9.9 million.