DB Corp, the publisher of Dainik Bhaskar, would raise around Rs. 450 crore through an initial public offer next week to part finance its expansion into smaller cities.
“We are planning to raise around Rs. 450 crore through the initial public offer (IPO) route in the second week of this month. The promoters would dilute 10 per cent of their stake to the public,” DB Corp Director Girish Agarwaal told PTI.
Mr. Agarwaal further said that out of the 10 per cent stake dilution, Cliffrose Investments Ltd, a Warburg Pincus affiliate, which holds 7.14 per cent in the company, would offload 3 per cent equity and the rest would be fresh issue.
Regarding the utilisation of the IPO funds, Mr. Agarwaal said “the funds would be used for launching in new markets and for repaying some of the debts for the company.”
DB Corp is planning to expand to new markets in the next two years and would focus on tier II and tier III cities.
DB Corp publishes 7 newspapers, 48 newspaper editions and 128 sub-editions in three languages (Hindi, Gujarati and English) in 11 states in India.
Mr. Agarwaal also said the company is looking at anchor investors, but did not specify the names.
In August this year, the company had filed the draft red herring prospectus (DRHP) with the market regulator, Securities and Exchange Board of India (SEBI).