D B Corp IPO Analysis

D B Corp Ltd. (DBC) was originally incorporated as Multi-Tech Energy Ltd in 1995. It is one of the leading print media companies in India, publishing 7 newspapers, 48 newspaper editions and 128 sub-editions in three languages (Hindi, Gujarati and English) in 11 states in India.

Flagship of the company’s newspapers, Dainik Bhaskar, Divya Bhaskar and Saurashtra Samachar, have a combined average daily readership of 15.5 million readers, making them one of the most widely read newspaper groups in the country. Dainik Bhaskar alone with a total average daily readership of 11.7 million readers is a widely read newspaper in Madhya Pradesh, Chattisgarh, Rajasthan, Haryana, Punjab and Chandigarh.

In addition to newspapers, DBC publishes 5 periodicals namely Aha Zindagi (a monthly magazine published in Hindi and Gujarati), Bal Bhaskar (a Hindi magazine for children), Young Bhaskar (a children’s magazine in English) and Lakshya (a career magazine in Hindi).

Also, Company has a significant presence in the radio business under the brand name MY FM. They operate 17 FM radio stations in different cities.

Issue Objectives

• Setting up new publishing units
• Upgrading existing plant and machinery
• Enhancing brand image through sales and marketing
• Reducing existing working capital loans
• Prepaying existing term loans and
• Achieving the benefits of listing

IPO Grading / Rating
ICRA has assigned an IPO Grade 4 to DBC’s IPO indicating above-average fundamentals.

Issue Open: Dec 11, 2009 - Dec 15, 2009
Issue Type: 100% Book Built Issue IPO
Issue Size: 18,175,000 Equity Shares of Rs. 10
Issue Size: Rs. 336.24 - 385.31 Crore
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 185 - Rs. 212 Per Equity Share
Market Lot: 30 Shares
Minimum Order Quantity: 30 Shares
Listing At: BSE, NSE

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