One of India's leading print media businesses Lokmat Media has proposed to tap the capital market for funding its expansion plan. It has filed draft red herring prospectus (DRHP) with the SEBI for public issue of 13,829,064 equity shares.
It publishes three newspapers: Lokmat in Marathi, Lokmat Samachar in Hindi and Lokmat Times in English which collectively have 17 editions and 58 sub-editions.
Lokmat Media's flagship newspaper Lokmat has been the leading Marathi newspaper in terms of average daily circulation and average daily readership in Maharashtra in 2008, 2009 and for the six month period ended June 30, 2010 (Source: ABC January-June and July-December, 2008 and 2009 and January-June, 2010 and IRS 2008 R2, IRS 2009 R2 and IRS 2010 Q3) and in terms of average daily circulation in Goa in 2009 and for the six month period ended June 30, 2010 (Source: ABC, July-December 2009 and January-June 2010).
It has also into broadcasting business, which is conducted through a 50-50 joint venture with ibn18 Broadcast Limited. The joint venture company, IBN-Lokmat News Private Limited (IBNL), operates IBN-Lokmat, a 24-hour Marathi news and current affairs television channel which went on air on April 6, 2008. It also recently entered the film production and distribution business and in August 2010, released debut film in Marathi, entitled Jetaa, in association with Ramesh Deo Production Private Limited.
Promoters Mr Vijay Darda and Mr Rajendra Darda hold 54.75% stake in company and other family members hold 45.25% stake, which will be reduced to 41.07% & 33.93% post issue.
Company intends to use net issue proceeds of Rs 368.6 crore for upgrading existing printing facilities (Rs 150.36); building capability for expansion to new markets (Rs 90 crore); brand building, promotion and marketing (Rs 30 crore); pre-payment and repayment of loans (Rs 48.23 crore; acquiring and co-producing Indian films, including primarily Marathi language films as well as certain Hindi language films (Rs 25 crore); and investment in IBNL (Rs 25 crore).
For the year ended May 31, 2010, Lokmat Media reported a net profit of Rs 49.5 crore on total income of Rs 391.21 crore.
Book running leading managers to the issue are Kotak Mahindra Capital Company Limited and Enam Securities Private Limited.
It publishes three newspapers: Lokmat in Marathi, Lokmat Samachar in Hindi and Lokmat Times in English which collectively have 17 editions and 58 sub-editions.
Lokmat Media's flagship newspaper Lokmat has been the leading Marathi newspaper in terms of average daily circulation and average daily readership in Maharashtra in 2008, 2009 and for the six month period ended June 30, 2010 (Source: ABC January-June and July-December, 2008 and 2009 and January-June, 2010 and IRS 2008 R2, IRS 2009 R2 and IRS 2010 Q3) and in terms of average daily circulation in Goa in 2009 and for the six month period ended June 30, 2010 (Source: ABC, July-December 2009 and January-June 2010).
It has also into broadcasting business, which is conducted through a 50-50 joint venture with ibn18 Broadcast Limited. The joint venture company, IBN-Lokmat News Private Limited (IBNL), operates IBN-Lokmat, a 24-hour Marathi news and current affairs television channel which went on air on April 6, 2008. It also recently entered the film production and distribution business and in August 2010, released debut film in Marathi, entitled Jetaa, in association with Ramesh Deo Production Private Limited.
Promoters Mr Vijay Darda and Mr Rajendra Darda hold 54.75% stake in company and other family members hold 45.25% stake, which will be reduced to 41.07% & 33.93% post issue.
Company intends to use net issue proceeds of Rs 368.6 crore for upgrading existing printing facilities (Rs 150.36); building capability for expansion to new markets (Rs 90 crore); brand building, promotion and marketing (Rs 30 crore); pre-payment and repayment of loans (Rs 48.23 crore; acquiring and co-producing Indian films, including primarily Marathi language films as well as certain Hindi language films (Rs 25 crore); and investment in IBNL (Rs 25 crore).
For the year ended May 31, 2010, Lokmat Media reported a net profit of Rs 49.5 crore on total income of Rs 391.21 crore.
Book running leading managers to the issue are Kotak Mahindra Capital Company Limited and Enam Securities Private Limited.
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