The Hindu Business Line : Deccan Chronicle plans launch in TN by Feb `05

Mr T. Venkattaram Reddy, Chairman, Deccan Chronicle Holdings Ltd (right), and Mr P.K. Iyer, Director - Finance, at a press conference in Mumbai on Monday. — Paul Noronha

Mumbai , Nov. 22

DECCAN Chronicle Holdings Ltd, which is planning to enter the equity market with its initial public offer, plans to launch its English newspaper, Deccan Chronicle, in Tamil Nadu.

It plans to launch the newspaper by February 2005 with an initial print run of 1,00,000 copies. The newspaper will have three editions - Chennai, Tiruchi and Coimbatore - in Tamil Nadu. The company is in the process of setting up a press in Chennai and has acquired land in Tiruchi and Coimbatore.

The company needs an investment of Rs 100 crore for its Tamil Nadu foray. This requirement will be met from the equity issue.

The company is banking on colour advertisement as it is at a premium over black and white. "Expansion into colour printing is the biggest revenue driver," Mr P.K. Iyer, Executive Director - Finance, Deccan Chronicle Holdings Ltd, said.

The IPO is a fresh issue with 80 lakh shares plus a greenshoe option of 12 lakh shares on offer. The price band has been fixed at Rs 162-194 per share.

The issue being made through a 100 per cent book-building process has reserved 60 per cent of the offer for allotment to qualified institutional buyers on a discretionary basis and another 15 per cent will be allotted to non-institutional bidders. For the retail individual bidders, 25 per cent of the issue has been allotted.

The company also plans to utilise funds from this IPO towards new strategic initiatives, including acquisitions in the media world.

Post-issue, the promoters' holding, currently at 100 per cent, will fall to 80 per cent.

More Stories on : Announcements | Strategy | IPOs | Newspapers & Publishing

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page