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First-generation entrepreneur Anurag Batra and investment banker Vikram Jhunjunwala, who bought fortnightly magazine Businessworld from ABP Pvt Ltd last September, have sold Radha Kapoor, daughter of YES Bank chief executive officer and managing director Rana Kapoor, a stake in the company at a 50-60 per cent premium over the previous valuation.
Media reports suggest Kapoor paid Rs 12.5 crore for a 40 per cent stake in Businessworld, valuing it at Rs 31.50 crore. Batra, according to insiders, had struck the deal to buy out BusinessWorld at around Rs 15-20 crore from ABP Pvt Ltd.
Batra confirmed the valuation of the magazine had gone up by 50-60 per cent in the eight months since he bought it. Kapoor did not respond to emailed questions by Business Standard and was not available on phone.
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"Businessworld is a strong brand. We are trying to make it more contemporary and capitalise on the digital platform. Our efforts have paid off as revenues have gone up by 30 per cent in the past six months and circulation is up 23 per cent," Batra said.
The stake sale proceeds will be used for expansion, including the Businessworld.in website with daily news and features. Batra also intends to launch Businessworld Communities.
"We will start with a digital product called Daily Hotelier and follow it up with a print version every quarter, much like the model we follow with exchange4media and Impact. Hotelier International is a Swiss magazine available in 25 countries and we will be launching it over the next couple of months in India. After that, we will look at a product that caters to the defence sector. I intend to launch one such product under Business World Communities every six months," Batra added.
He has roped in Bhuvanesh Khanna as CEO for the Business World Communities business. The rest of the capital raised will be used to grow the Business World Engage, which deals with events and the magazine's core business. Batra has been recruiting for the various ventures he has planned.
"As of now, there is no need to infuse capital. As and when the need arises, I will be open to bringing in investors. My experience lies in running a media portal and magazine and buying Businessworld was the logical step-up for me. I shall use my expertise in the business to develop the brand," Batra said.
