Sandesh issues 12 per cent equity to Times group

Sandesh Limited, a leading Gujarati daily with its widespread presence in the state, has joined hands with The Times of India group.

As part of the agreement, Sandesh has decided to issue 12 per cent preferential equity to the TOI group.

Talking to Business Standard, Falgunbhai C Patel, chairman and managing director, Sandesh Limited, said the equity to be issued to TOI would be fresh and would not dilute the promoters' stake in the company.

According to Patel, it's time for newspapers like Sandesh to consolidate their presence through tie-ups with media houses that have pan-India presence as the industry is undergoing major changes

The board of directors of Sandesh Limited has cleared the proposal and it has been forwarded to the Securities and Exchange Board of India (Sebi) and the BSE for their respective clearances.

Although both the sides are busy fine-tuning details of the joint venture, Sandesh chairman said the widespread presence of the Times group was expected to help Sandesh in consolidating its presence in Gujarat and beyond.

"We plan to launch the Mumbai edition of Sandesh before the end of current financial year and expect that our partner's strong base in Mumbai would help us in establishing ourselves there," he said.

Similarly, Sandesh would extend assistance to the Times group in its attempt to spread its network in Gujarat. "We would offer our strong infrastructure presence in most of the leading cities of the state to TOI in expanding and consolidating business," he said.

Besides, both plan to share their editorial content with each other. "We have a widespread editorial network even in the remotest area of the state which could be shared with the Times group," said Patel.

For advertisement revenue, both sides would offer combine rates. While Times would gain from having a leading local language daily in its fold, Sandesh would benefit from TOI's expanded network in the country.

For circulation, Times and Sandesh are expected to offer a combine product of bouquet to the readers.