The Hindi language publication arm of the Hindustan Times Group, Hindustan Media Ventures (HMVL) made a reasonable debut on the stock exchange listing at around 3% premium and in early morning trade is quoting at 15% premium to issue price of Rs 166 a piece.
The media firm had earlier roped in a group of 13 anchor investors, including Reliance Capital and State Bank of India, for its Rs 270 crore initial public offer.
The company intends to use the fund for expansion and pre-payment of debt. Half of the money is to be used for pre-payment of loans, with the rest split between investment for setting up new printing units and upgrades. The IPO money will make HMVL a debt-free company.
HMVL publishes leading Hindi daily ‘Hindustan’, along with children magazine Nandan and the women-focused ‘Kadambini’. It is a 98.85% subsidiary of HT Media Ltd, the publisher of English dailies the ‘Hindustan Times’ and ‘Mint’.
Edelweiss Capital and Kotak Mahindra Capital Company were the book-running lead managers to the issue.