MUMBAI, July 14: Hindustan Times made its much-awaited Mumbai debut today with a cover price of Rs 2.50. What’s more, the newspaper group from Delhi has set up another date with the financial capital of India. This time, it’s to do with HT’s maiden public issue, which will be launched by August-end.
The company behind the newspaper, HT Media Ltd, had filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) on April 21.
Promoters hold 77.11% of the pre-issue equity share capital in HT Media, while Henderson, according to media reports, has a 15.83% stake (company sources said Henderson has a 17% stake), while Citicorp holds 7.06% of the pre-issue share capital. HT Media is a KK Birla group company. While Citicorp has not offered its share for an public offering, Henderson is willing to dilute up to five per cent stake.
For the record, HT Media proposes a public issue of 46,40,000 equity shares of Rs 10 each and an offer for sale of 23,55,000 equity shares of Rs 10 each from HPC (Mauritius) Ltd. The HT Media IPO will also have a greenshoe option of 6,96,000 shares by the promoters, Hindustan Times Ltd. The value of IPO is still unclear.
From the IPO proceeds, HT Media proposes to use Rs 76.40 crore for capital expenditure, Rs 76 crore for sales and marketing and Rs 10 crore for its radio services. HT Media recently signed a memorandum of understanding with Virgin Radio (Asia) Ltd for its Indian FM radio business. Hindustan Times, meanwhile, is starting a fresh multi media campaign with its Mumbai launch.
While the outdoor campaign has begun early evening on Wednesday, April 13, the second phase of television campaign will begin today. In addition, the company is also running a contest HT Seven Lucky offer’. The contest is all about preserving seven out of the first 14 issues of HT, and writing a slogan. The lucky reader could even win a Mercedez Benz car.
