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| Edited By: |Source: Reuters |Updated: Mar 17, 2018, 04:45 AM IST
Hindustan Media Ventures Ltd (HMVL), a unit of HT Media Ltd, notched up more than 13% on its market debut today, in line with other positive listings this year.
Shares in HMVL listed at Rs170 on the BSE, a premium of 2.4% to the issue price of Rs166 each, and rose to as much as Rs188.3 in early trades. Its shares listed at Rs177.95 on the NSE.
The company, which publishes Hindi newspaper Hindustan, had set a price band of Rs162-Rs175 per share for the Rs2.7 billion issue, which was mostly subscribed at the lower end of the price band.
Hindustan has had firm presence in key Hindi markets of Bihar and Jharkhand since its launch in 2007, and is the fastest growing daily in Uttar Pradesh, the largest Hindi market in India, analysts said.
HMVL's IPO, the third media listing this year after Hathway Cable & Datacom and DB Corp, was subscribed 5.34 times.
"We believe HMVL is one of the better players in the Indian regional print media and is likely to deliver a better growth in the coming years," brokerage company Sharekhan said in a pre-IPO note.
"However, the increasing competition from the large players like Jagran Prakashan and DB Corp can be a key risk to the profitability of the company," it added.
It plans to use the proceeds for expanding presence in new markets and for repayment of debts. It also plans to set up new publishing units for printing and publishing new editions of Hindustan.
Edelweiss Capital and Kotak Mahindra Capital are book running lead managers for the issue. At 9.32, shares were up 12.98% at Rs187.6 in a firm Mumbai market.
