Hindustan Times will look at acquisitions in the south-Indian language newspaper market after it launches its Mumbai edition in two-three months.
"Hindustan Times has been exploring alliances in the past in different markets. Strategic alliances are also possible. Besides, it also sees possibilities of mergers and acquisition in the southern market," said a source close to the development.
According to the source, the newspaper's immediate priority is the Mumbai edition. At the moment, Hindustan Times is finalising plans for the Mumbai edition, including pricing and the exact time of the launch, according to sources.
In addition, HT Media is exploring the possibilities of tapping the capital market to raise funds. Although discussions with bankers were at a very nascent stage for an initial public offer, the source said the company was looking at this option seriously.
Company officials did not deny or confirm this move. HT Media had recently restructured its board by bringing on former Planning Commission Member NK Singh, ITC Chairman YC. Deveshwar and former Ernst & Young India Chairman Kashi Nath Memani as independent members.
HT Media, in October last year, had raised Rs 69 crore (Rs 690 million) from Citicorp International Finance by divesting its 8.27 per cent stake in it.
At the same time, it had also off-loaded additional equity to Henderson to increase its stake in the company to 16.37 per cent for Rs 25 crore (Rs 250 million) from 15.38 per cent. The two deals have taken the foreign shareholding in HT Media Limited to 24.64 per cent and will bring down the promoter's holding to 75.36 per cent.
Current government rules permit foreign investments of up to 26 per cent in a newspaper company.
The company is also exploring other media businesses. It has tied up with Richard Branson's Virgin Radio Asia to scout for business opportunities in India.
According to sources close to the development, subsequent to this tie up, both partners will explore the possibility of starting a radio venture. Besides, the partners will also explore cities where the venture can start.
