Singapore firm buys Mid Day pie

T Rowe Price International of Singapore has picked up close to 5 per cent stake in Mid Day Multimedia. The Mumbai-based media company, at its board meeting today, allotted 21.9 lakh (2.19 million) shares to T Rowe through a preferential allotment.

Manajit Ghoshal, chief financial officer, Mid Day Multimedia, told Business Standard: "Out of our expanded share capital of 4.47 crore (44.7 million) shares, we have allotted 21.9 lakh shares to the foreign institutional investor at a premium of Rs 72 on a Rs 10 share." This represents a 4.89 per cent stake of the company, Ghoshal added.

The private placement deal has worked out for Rs 18 crore (Rs 180 million). The company has also approved an increase in the foreign direct investment stake to 26 per cent, and will allow investments by foreign corporate bodies and individuals.

The Mid Day Multimedia scrip on Wednesday gained 2 per cent on the Bombay Stock Exchange, closing at Rs 97.55.

According to Ghoshal, Mid Day would use the funds to buy more printing presses, which are critical to its nation-wide launch.

The company, which has an eveninger -- Mid Day -- in Mumbai, was planning to expand to other cities by the end of this financial year, he said. Apart from the print media business, the company is also betting big on radio.

With the private FM broadcasting norms being liberalised, Mid Day is looking at FM licences across cities. Ghosal said that with 330 licences waiting for bidding across nine cities in the country, radio presents an exciting opportunity for growth.

The company has appointed DSP Merrill Lynch to look for appropriate partner companies, which would be willing to explore the radio segment.