Hindustan Media prices IPO at Rs 162 to Rs 175 a share

The initial public offer of Hindustan Media Ventures Ltd, which publishes the nation’s third largest Indian daily, Hindustan, to raise Rs 270 crore will be open for subscription from July 5 to July 7.

The initial public offer of Hindustan Media Ventures Ltd (HMVL), which publishes the nation’s third largest Indian daily, Hindustan, to raise Rs 270 crore will be open for subscription from July 5 to July 7.

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The issue by HMVL, as associate company of HT Media Ltd, which publishes Hindustan Times, has been priced between Rs 162 and Rs 175 per share.

HMVL reported a net profit of Rs. 45 crore on revenues of Rs 439 crore in the fiscal year ended March 31, 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.

Hindustan, which is a leader in Bihar and Jharkhand, is also growing fast in UP and Uttarakhand, besides having a strong presence in Delhi and NCR.

The company expects growth in both literacy and economic prosperity in Tier II and III cities will fuel advertisement and circulation expenditure in the coming years.