What experts say about DB Corp listing?
DB Corp, publisher of Dainik Bhaskar, will list its equity shares on January 6, 2010. It has fixed the issue price at Rs 212 per share for its IPO of 1.81 crore shares.
While answering to Moneycontrol.com about this listing, experts looked confident that the stock will list around Rs 230-240 as against issue price of Rs 212 per share. There were reports that grey market premium was around Rs 25-30.
Manish Bhatt of Prabhudas Lilladher said DB Corp would list around Rs 230-236. “It will go upto Rs 290-292 in the medium term. One can consider buying the stock if it slips to Rs 205-210″, he has said.
Investment Advisor, SP Tulsian said DB Corp would see around Rs 235-240 on listing. However, he doesn’t see any value in the stock beyond Rs 240.
Looking at the appetite and the company’s rapid growth, Avinash Gorakshakar of Reliance Money said DB Corp would list with premium of Rs 25-30 over its issue price of Rs 212. He does not mind buying the stock at around Rs 212-230.
Dipan Mehta, Member BSE/NSE said DB Corp would be a good listing. “It was at a discount to Jagran Prakashan and more or less the profile and profitability and the performance of both these publishing houses are pretty similar. So my sense is that one could get a pop on listing. The issue also by and large had done well, it had decent amount of retail participation. So I think it will act as a good trigger for the entire sector”, he has said.
The issue had received overwhelming response from investors and saw highest subscription among the IPOs of 2009. It was subscribed 39.54 times on the back of support from qualified institutional investors (QIBs). The price band for the issue was at Rs 185-212 per share and the issue was opened during December 11-15, 2009.
The company intends to use the proceeds of the issue for expanding and strengthening its existing markets, launching publications in new markets and upgrading its existing machinery in some centres, apart from repayment of its term loans.
DB Corp publishes 7 newspapers, 48 newspaper editions and 128 sub-editions in three languages (Hindi, Gujarati and English) across 11 states. It is one of the leading print media companies of India, with an impressive footprint, circulation and readership. Its strengths lies in strong established brands in Indian Print media businesses, geographical reach and leadership in markets.
Source : Moneycontrol
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Category: IPO, Stock-News
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