HT Media float opens on Aug 4

HT Media is accessing the capital market with an initial public offer (IPO) comprising a fresh issue of 46.4 lakh equity shares and an offer for sale by HPC (Mauritius) of 23.55 lakh equity shares of Rs 10 each for cash at a premium to be decided through book-building, the company said at a press conference in New Delhi today.

The price band for the offer is Rs 445 and Rs 530 and the issue opens on August 4 and closes on August 10. There is also a greenshoe option of up to 6.96 lakh equity shares by Hindustan Times. If exercised in full, the aggregate offer would go up to 76.91 lakh equity shares.

The issue, without the greenshoe option, would constitute 15.08 per cent of the fully diluted post-issue capital and with the option exercised in full would be 16.33 per cent.

At least 60 per cent of the issue to the public shall be allocated on a discretionary basis to qualified institutional buyers.

Not more that 10 per cent of the issue shall be available for allocation on a proportionate basis to non-institutional bidders, and not more than 30 per cent shall be available for allocation on a proportionate basis to retail individual bidders.

Funds generated through offering would be utilised primarily to meet the company's capital expenditure plans and brand building initiatives as well as obtain benefits of listing.

With the liberalisation of foreign direct investment policy in print media, Citicorp and HPC (Mauritius) took equity stake and, respectively, hold 7.06 per cent and 15.83 per cent of the company's pre-issue capital.

Hindustan Times, the promoter holds 77.11 per cent of the company's pre-issue capital. HT Media is India's second largest print media company in terms of circulation of daily newspapers.