International publishing major Penguin Random House plans to buy out Ananda Publishers’ stake in Penguin Books India. Ananda Publishers is part of the Ananda Bazaar Patrika Group.
The company has sought a nod from the Foreign Investment Promotion Board to acquire 45 per cent stake owned by its Indian partner. It plans to invest Rs 55 crore for this stake buy.
Penguin India was formed in 1985, with UK-based publishing house, Penguin Publishing Company, holding a 40 per cent stake in Penguin India, which it later increased to 55 per cent.
After the proposed stake sale, Penguin Publishing Company will own 55 per cent stake in Penguin India, while the balance will be owned by Penguin Random House Singapore.
This move comes after Pearson Inc-owned Penguin completed its merger with Germany-based Bertelsmann’s Random House in July this year, emerging as the biggest book publisher in the world.
In the publishing sector, foreign direct investment up to 100 per cent is permitted subject to compliance with the legal framework and valuation of shares in accordance with Reserve Bank of India guidelines.
Headquartered in New Delhi, Penguin India publishes its own books in English and Hindi. While it publishes business books under Portfolio, its other imprints include Allen Lane, Hamish Hamilton, Metro Reads, among others.