HT Media to dilute up to 23 pc in HMVL through IPO | business | Hindustan Times
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HT Media to dilute up to 23 pc in HMVL through IPO

HT Media Limited will be diluting up to 23 per cent of its holding in its subsidiary Hindustan Media Ventures (HMVL) through an IPO scheduled to hit the capital market on July 5.

business Updated: Jul 01, 2010 17:34 IST

HT Media Limited will be diluting up to 23 per cent of its holding in its subsidiary Hindustan Media Ventures (HMVL) through an IPO scheduled to hit the capital market on July 5.

NMVL, on Thursday, fixed the price-band for its IPO at between Rs 162-175 per share and plans to raise Rs 270-crore through the issue. HMVL publishes the Hindi-language Hindustan newspaper. "The dilution by HTML would be between 21 and 23 per cent depending on the exact price at which the sale happens," a senior official from Edelweiss Capital, one of the book running lead managers, said. Post-IPO, HTML will hold the rest of the equity, he added.

The IPO, opening on July 5 will close on July 7 and the company plans to utilise Rs 135-crore or half of the funds raised for prepayment of loans, Rs 66-crore for setting-up new units and another Rs 55-crore for upgrades, it said in its red herring prospectus.

After three years of being in the red, the company registered a net profit of around Rs 45-crore in 2009-10, which is slated to move up as advertising revenues increase with an upward movement in the GDP.