MUMBAI: CARE assigned 'CARE IPO Grade 4' to the proposed initial public offer of DB Corp Ltd, which indicates above average fundamentals.
The grading factors in the company’s long experience in print media, track record of promoters and strong brand name of the publications. It also takes into account well diversified geographical presence and growth prospects of the industry.
However, the grading is constrained by the risks associated with expansion in newer territories and its impact on the overall profitability of the company.
DB Corp is planning an IPO of 188 lakh equity shares of face value Rs 10 each. The company publishes five newspapers – Dainik Bhaskar, Divya Bhaskar, Saurashtra Samachar and on a franchisee basis, DNA Money and DNA.
Its flagship publication, ‘Dainik Bhaskar’ is present in various states like Madhya Pradesh, Chattisgarh, Rajasthan, Haryana, Punjab, Chandigarh and enjoys highest readership in most of the territories. DB Corps Gujarati newspaper ‘Divya Bhaskar’ is the highest circulated Gujarati daily in that state.
The company also publishes five periodicals.
In addition to the newspaper and publication businesses, DB Corp through its subsidiaries operates an FM radio and internet portals which contain editorial content from daily editions of the company’s newspapers in the form of e-papers.
The promoters of DBCL are into print media business since four decades. The promoter group combined own 92.86 per cent of the total share holding of DB Corp and Cliffrose Investment --an affiliate of Warburg Pincus--owns the remaining 7.14 per cent.
The IPO will constitute 10 per cent of the fully diluted post-issue equity share capital of DB Corp. Proceeds from the issue are intended to be deployed towards expansions, modernisation of plant and machinery, repayment of working capital loans, prepayment of term loans and other general corporate purpose.
The grading factors in the company’s long experience in print media, track record of promoters and strong brand name of the publications. It also takes into account well diversified geographical presence and growth prospects of the industry.
However, the grading is constrained by the risks associated with expansion in newer territories and its impact on the overall profitability of the company.
DB Corp is planning an IPO of 188 lakh equity shares of face value Rs 10 each. The company publishes five newspapers – Dainik Bhaskar, Divya Bhaskar, Saurashtra Samachar and on a franchisee basis, DNA Money and DNA.
Its flagship publication, ‘Dainik Bhaskar’ is present in various states like Madhya Pradesh, Chattisgarh, Rajasthan, Haryana, Punjab, Chandigarh and enjoys highest readership in most of the territories. DB Corps Gujarati newspaper ‘Divya Bhaskar’ is the highest circulated Gujarati daily in that state.
The company also publishes five periodicals.
In addition to the newspaper and publication businesses, DB Corp through its subsidiaries operates an FM radio and internet portals which contain editorial content from daily editions of the company’s newspapers in the form of e-papers.
The promoters of DBCL are into print media business since four decades. The promoter group combined own 92.86 per cent of the total share holding of DB Corp and Cliffrose Investment --an affiliate of Warburg Pincus--owns the remaining 7.14 per cent.
The IPO will constitute 10 per cent of the fully diluted post-issue equity share capital of DB Corp. Proceeds from the issue are intended to be deployed towards expansions, modernisation of plant and machinery, repayment of working capital loans, prepayment of term loans and other general corporate purpose.
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