Deccan Chronicle seeks Rs 200 cr private equity funding

The Hyderabad-based Deccan Chronicle Holdings Ltd (DCHL)is scouting for private equity of Rs 200 crore. The company, according to market sources, has already appointed ICICI Securities Ltd (ISec) to look out for parties interested in picking up the equity.

DCHL's top managment could not reached for comment. An ICICI Securities executive said he could neither confirm nor deny the news.

T V Venkattram Reddy, chairman, DCHL, and the company's executive director, P K Iyer, could be reached for comments. A fax sent to P K Iyer on July 15 seeking clarification on the subject did not evoke any response.

A merchant banker based out of Hyderabad said DCHL was originally planning raise funds through a combination of private placement and IPO. "Now they may have changed their plans and decided to go for a complete private placement," sources in Hyderabad said.

In December 2003, the company had raised Rs 57.50 crore secured redeemable taxable cumulative non-convertible debentures (NCDs) by way of private placement.

The offer document placed with National Stock Exchange, while raising the NCDs states the company's investment plans. Prominent among its plans for was a proposed Chennai edition.

The offer document placed with the wholesale debt market said, "The company is acquiring two new presses f or their Hyderabad unit. Besides the company plans to incur infrastructure capital expenditure for its new units at Chennai, Kondapur (Hyderabad) and at Cuddapah. The total cost of the above projects is expected to be Rs.62.20 crore. The proceeds of the present issue of debentures would be utilised for the above modernisation, expansion project of the company and normal capital expenditure. The expenses of the present issue would also be met out of the proceeds of this offer."