HMVL,- the publisher of leading English dailies the Hindustan Times and Mint -- entered into the capital market with its IPO  

on its 1ST DAY Hindustan Media's Rs 270 cr IPO sees very low response

At the end of first day, the IPO of got bids for just 45,600 shares, as against 1.38 crore equities on offer for public, as per the data with the National Stock Exchange (NSE).

Only retail buyers bid for the issue. They bid for 45,600 shares, against 49.79 lakh equities reserved for them, thereby getting subscribed 1 per cent, according to the NSE data.

In other categories (QIB and HNIs), the issue remained unsubscribed, as per the NSE data.

HMVL, promoted by HT Media Ltd -- the publisher of leading English dailies the Hindustan Times and Mint -- has entered into the capital market with its IPO priced between Rs 162 to Rs 175 per share. The offer closes on July 7.

The firm plans to raise Rs 270 crore through the IPO and proceeds will be used for expansion and pre-payment of debt.

The publication house has roped in a group of 13 anchor investors, including Reliance Capital Trustee Co and SBI, to whom about 27.78 lakh shares would be allocated at a price of Rs 166 per equity share aggregating Rs 46.10 crore.

HMVL is a 98.85 per cent subsidiary of HT Media. Till November 2009, HMVL's business comprised the printing work for Hindustan, the Hindi daily of the HT Media group.

In November, 2009, the entire Hindi publication business comprising the daily Hindustan and magazines Nandan and Kadambini were transferred by the parent company to HMVL on a slump sale basis. Thus, now HMVL shall run the Hindi business of the HT Media group.

The IPO is based on a 100 per cent book building process and shares offered through the issue are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange.

Edelweiss Capital and Kotak Mahindra Capital Company are the book running lead managers to the issue.

Shares of HT Media today closed at Rs 144.2, down by 1.64 per cent, on the BSE. The trading session of the Dalal Street was choppy and the BSE benchmark Sensex settled 19.51 points lower at 17,441.44.

A-8
Credits--http://economictimes.indiatimes.com

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