Jagran IPO likely in 3rd week of Jan

Jagran Prakashan is likely to tap the capital market in the third week of January with its maiden public issue estimated at about Rs 400 crore.

"We have filed the draft red herring prospectus with Sebi. The issue is expected to open in the third week of January," R K Agarwal, chief financial officer of Jagran Prakashan, told PTI over phone from Kanpur. He, however, declined to give the size of the issue.

The publishers of Hindi daily Dainik Jagran will offer one crore shares with a face value of Rs 10 along with a greenshoe option of selling another 15 lakh shares.

The stake of promoters and immediate family members will come down from 75% to 57% if the entire 1.15 crore shares are subscribed by investors.

Jagran will use the IPO proceeds for expansion and acquisitions estimated at Rs 298 crore.

"We have earmarked Rs 298 crore for expansion, general corporate expenses, working capital needs, outdoor expansion and acquisitions," Agarwal said.