Jagran stages volatile debut, ends in the red

Jagran Prakshan, publishers of Dainik Jagran, opened at a premium of 17.5% at Rs 376 on the Bombay Stock Exchange (BSE) on Wednesday.

On the National Stock Exchange, the stock debuted at a premium of around 13 per cent at Rs 361. The issue price was Rs 320.

Over 1.2 crore stocks changed hands on the BSE. On the NSE, the volumes stood at 1.7 crore. Though the scrip made a strong debut, it slipped below the offer price as investors booked profits.

On the BSE, the scrip wildly fluctuated between a low of Rs 268.1 and a high of Rs 405 before closing at Rs 273.65. The stock traded at a high of Rs 392 before closing at Rs 270.50 on NSE.

Meanwhile, the Reserve Bank of India has said that foreign funds would need its approval before buying more Jagran shares since the FII and FDI in print media has been capped at 26%.

Ireland's Independent News & Media Plc has over 20 per cent stake in Jagran Prakashan. The foreign stake in the company is at present at 24.9 per cent.

The company publishes Sakhi, a magazine targeted at women, and Jagran Varshiki, an annual general knowledge digest.

The company entered the capital market with a public issue of one crore shares in the price band of Rs 270-324. The proceeds from the issue will be used to fund its capital expenditure, acquisitions and strategic investments other media related businesses.

The public issue constituted 20 per cent of the fully diluted post-issue equity share capital of the company. The issue was subscribed 14.22 times.