Financial Daily from THE HINDU group of publications
Wednesday, Mar 08, 2006
Financial Daily from THE HINDU group of publications Wednesday, Mar 08, 2006 |
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Marketing
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Strategy Markets - IPOs Malar Publications to enter capital market Our Bureau
Eyeing investors Ahead of IPO, the company is in talks to rope in strategic investors. No sale of promoters' stake planned
GOING PUBLIC: Mr S. Balasubramaniam Adityan (right), MD, Malar Publications Ltd, with Mr Jaswant Munoth, MD, Munoth Financial Services Ltd. at a press conference in Mumbai on Tuesday . — Paul Noronha
Mumbai , March 7
Malar Publications Ltd (MPL), successful in its recent bid for seven FM radio stations in Tamil Nadu and Pondicherry, is in talks to rope in strategic investors. "Eventually we would like to go for an IPO,'' Mr S. Balasubramaniam Adityan, Managing Director, MPL, said here on Tuesday. According to Mr Jaswant Munoth, Managing Director, Munoth Financial Services, IPO plans are ready and MPL could tap the market in the next two to three months. The company, hailing from the same promoter family that publishes the Tamil daily Dhina Thandhi and with evening newspapers, magazines and a cable TV channel to its credit, wants to invest Rs 72 crore in the FM radio business. Of that, Rs 24.3 crore has already been spent for acquiring licence, much of it had as promoters' contribution. Promoters hold 100 per cent equity in Malar Publications.
Paid-up capital
After portfolio restructuring within the group that saw businesses other than the flagship daily shifting to MPL's stable, the company's paid-up capital has gone up from Rs 50 lakh last year to Rs 8.5 crore.
promoters' stake
Its authorised capital is Rs 30 crore. The proposed IPO would be a fresh issue with no sale of promoters' stake. The issue size would likely be 25 per cent of the capital needed, Mr Munoth said. Ahead of IPO, the company is in talks to rope in strategic investors; no sale of promoters' stake planned here too. Preference would be for investors from the media space, Mr Munoth said, pointing to media companies abroad catering to or familiar with the overseas Tamil population. Such arrangements open up potential for content sharing.
MPL line-up
Malar Publications was incorporated as a private limited company in 1979. Asked about Daily Thanthi staying off the MPL line-up, Mr Adityan said the flagship newspaper functioned as a separate company. However, the group is clear that it would have only one listed entity. "In all probability that would be Malar,'' Mr Munoth said. Daily Thanthi has estimated revenues of near Rs 180 crore. Malar Publications on the other hand, expects fiscal 2006 turnover of Rs 27.3 crore with profit after tax of Rs 2.34 crore. Admitting to severe competition in the Tamil newspaper space, particularly the segments occupied by MPL, Mr Adityan said the foray into FM radio was partly driven by the need to improve shareholder returns.
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