Media house DB Corp, which publishes Dainik Bhaskar, will enter the capital markets with its IPO of 1.81 crore equity shares on December 11, 2009 at a price band of Rs185/-Rs 212/-
The issue that constitutes about 10% of the fully diluted post-issue capital of the Company will close on December 15, 2009. About 7% of the issue will be a fresh offering, while the remaining 3% constitutes an offer for sale by Cliffrose Investment Ltd, an affiliate of private equity firm Warburg Pincus.
The company intends to use the proceeds of the issue for expanding and strengthening its existing markets, launching publications in new markets and upgrading its existing machinery in some centres, apart from repayment of its term loans. DB Corp publishes 7 newspapers, 48 newspaper editions and 128 sub-editions in three languages (Hindi, Gujarati and English) across 11 states. It is one of the leading print media companies of India, with an impressive footprint, circulation and readership. Its strengths lies in strong established brands in Indian Print media businesses, geographical reach and leadership in markets.
DB Corp Ltd is one of the fastest growing newspaper group with a combined readership of 15.5 million readers. (Source: Indian Readership Survey IRS 2009). Dainik Bhaskar its flagship Hindi newspaper is now published from 27 editions in 9 states. In order to meet different requirements and adapt to the colloquial taste of each distinct market Dainik Bhaskar also publishes 108 sub editions. Dainik Bhaskar published in 5 editions from Madhya Pradesh is the most widely read Hindi daily newspaper in Madhya Pradesh, with a 386% lead over its closest competitor, making it the preferred newspaper for advertisers. Dainik Bhaskar in Chattisgarh has the largest readership base of all the newspapers in Chattisgarh with a 49% lead over nearest competitor. There are 8 editions of Dainik bhaskar in Rajasthan covering almost the entire state. With a readership of 5.7 million readers , Dainik Bhaskar currently has one of the largest readership base of all the newspapers in Rajasthan ( source IRS 2009 It was Haryana where Bhaskar first introduced the concept of every district within the region having a separate sub-edition- there are 3 editions of Dainik Bhaskar in Haryana and according to IRS 2009, it has a 45% lead over its closest competitor. Dainik Bhaskar launched its operations in Punjab in 2006 and it became the most widely read newspaper in Amritsar and Jallandar from the date of its launch.
Its newspaper Divya Bhaskar is the No 1 Gujarati newspaper in terms of circulation in Gujarat. ( source ABC July-Dec 2008). We believe that we have succeeded in creating newspapers that are “by the people, for the people and of the people” meaning we strive for our newspaper to address the specific interest and needs of our consumer base so that they feel affinity towards the product.
DBCL is committed to develop multiple communication channels through which we are able to directly interact with our existing and prospecting consumers.
Through its subsidiary, Synergy Media Entertainment Limited (SMEL), it also has a presence in the radio business under the brand name MY FM. Through SMEL, it operates 17 FM radio stations in 17 cities in India, namely, Jaipur, Ahmedabad, Chandigarh, Amritsar, Jalandhar, Indore, Bhopal, Gwalior, Udaipur, Ajmer, Surat, Bilaspur Nagpur, Kota, Jabalpur, Raipur and Jodhpur.
Enam Securities Private Limited, Citigroup Global Markets India Private Limited, and Kotak Mahindra Capital Company Limited are the Book Running Lead Managers to the issue.
