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Rediff.com  » Business » Deccan Chronicle files paper with Sebi

Deccan Chronicle files paper with Sebi

September 30, 2004 16:33 IST
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Deccan Chronicle Holdings Ltd, the publisher of English newspaper Deccan Chronicle and Telugu paper Andhra Bhoomi, has filed draft red herring prospectus with market regulator Securities and Exchange Board of India for offering 8.01 million shares of face value Rs 10 each, with a greenshoe option of 1.2 million shares.

The issue, through the 100 per cent book-building route, constitutes 20 per cent of the fully diluted post issue paid-up capital of the company. If the green shoe option is exercised, it would represent 22.3 per cent.

At least 60 per cent of the issue shall be allocated on a discretionary basis to Qualified Institutional Buyers while 25 per cent has been set aside for retail individual bidders. The rest is reserved for non-institutional bidders.

The company proposes to list shares on the Bombay Stock Exchange and National Stock Exchange. Deccan Chronicle, the flagship newspaper of the company, publishes seven editions in Andhra Pradesh.

"The object of the issue is to raise capital for financing new printing facilities, advertising and marketing and such expenses that may be incurred on entering new territories, working capital and general corporate purpose, including strategic initiatives and acquisitions," it said in the prospectus.

Through the IPO proceeds, it proposes to launch three editions in Tamil Nadu, in which it proposes to invest Rs 114.3 crore (Rs 1.14 billion) for setting up new printing facilities.

ICICI Securities is the book-running lead manager to the issue while Karvy Computers is the registrar to the issue.

The company's total income for the year ended March 31, 2004 was Rs 122.3 crore (Rs 1.22 billion), siginificantly higher than Rs 22.1 crore (Rs 221 million) in the previous fiscal.
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