Jagran Prakashan fell 2.43% to Rs 136.60 at 11:30 IST on BSE after the company announced its foray into the radio industry by acquiring Music Broadcast.
The announcement was made after market hours on Tuesday, 16 December 2014.
Meanwhile, the BSE Sensex was fell 77.32 points, or 0.29%, to 26,704.12.
On BSE, so far 1.26 lakh shares were traded in the counter, compared with an average volume of 70,077 shares in the past one quarter.
The counter witnessed volatility. The stock rose 9.39% at the day's high of Rs 153.15 in early trade, which is also a 52-week high for the counter. The stock fell 6.25% at the day's low of Rs 131.25 so far during the day.
The stock hit a 52-week low of Rs 82 on 17 December 2013.
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The stock had outperformed the market over the past one month till 16 December 2014, rising 4.52% compared with 4.51% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 9.25% as against Sensex's 1.09% rise.
The mid-cap company has an equity capital of Rs 65.38 crore. Face value per share is Rs 2.
The board of Jagran Prakashan approved the company's foray into the radio industry via acquisition of Music Broadcast (MBPL), which operates India's leading radio network known as "Radio City". It is present in 20 stations across 7 states. The network has a strong national presence, with a presence in the top 14 out of 16 advertisement revenue generating markets with a focus on SEC AB audiences. MBPL's fiscal year ended March 2014 revenues were Rs 161.80 crore and the half year ended September 2014 (H1-FY 2015) (unaudited) revenues exhibit healthy growth of 28% in ad revenues. MPBL's current operating margins are 28% approximately, the company said in a statement.
The acquisition will be funded from internal accruals and investments. The acquisition will not impair the company's ability to distribute dividends, the company added.
The acquisition is subject to regulatory approvals, including from Ministry of Information and Broadcasting, and execution of binding agreements. As part of the acquisition, the company is acquiring MBPL's holding company and fellow subsidiary that provides activations, the company said.
On a consolidated basis, Jagran Prakashan's net profit rose 24.1% to Rs 56.55 crore on 5.7% increase in net sales to Rs 425.19 crore in Q2 September 2014 over Q2 September 2013..
Jagran Prakashan is a media and communications group with its interests spanning across print, OOH, activations, digital, covers all of India as its footprint - and is arguably amongst one of the largest media conglomerates in the country. It's newspaper operations alone with 9 newspaper titles in 5 different languages, across 15 states with over 100 editions.
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