Hindustan Media Ventures (HMVL), the Hindi publication arm of the Hindustan Times Group, has roped in a group of 13 anchor investors, including Reliance Capital Trustee Co and State Bank of India, for its Rs 270 crore initial public offer opening tomorrow.
The company has informed the Bombay Stock Exchange and the National Stock Exchange that about 27.78 lakh equity shares would be allocated to anchor investors at a price of Rs 166 per equity share aggregating Rs 46.10 crore.
Reliance Capital Trustee Company will get 30.38 per cent of the said portion (about 8.43 lakh equity shares), while five entities of Birla Sun Life Trustee Company would get 30.37 per cent of the allotted equity shares.
SBI will get 9.98 per cent (2.77 lakh equity shares), while Canara Robeco Mutual Fund will get 8.67 per cent of the shares reserved for the anchor investors.
HMVL has fixed the price band for its IPO between between Rs 162 and Rs 175 per share. The offer closes on July 7.
The company plans to raise Rs 270 crore through its maiden offer and the funds would be used for expansion and pre -payment of debt.
"We will use Rs 135 crore for pre-payment of loans, Rs 66 crore for setting up new printing units and another Rs 55 crore for upgrades. The proceeds of the IPO will help us become a debt-free company," Piyush Gupta, Group CFO at HT Media had said.
HMVL publishes leading Hindi daily 'Hindustan', along with children magazine Nandan and the women-focused 'Kadambini'.
