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With an eye to strengthen its position as one
of India's leading print media companies and
the second largest print media conglomeration
(in terms of circulation of daily newspapers),
HT Media Ltd., owners of The
Hindustan Times newspaper, has announced
an initial public offer (IPO). The IPO comprises
a fresh issue of 4,640,000 equity shares and
an offer for sale of 23,55,000 equity shares of
Rs 10 each from HPC (Mauritius) Ltd.
The price band for the offer has been set
between Rs 445 and Rs 530 and the issue
opens for subscription on August 4, 2005 and
closes on August 10, 2005. The HT Media IPO
will also have a green shoe option of 6,96,000
shares by the promoters, Hindustan Times
Ltd. From the IPO proceeds, HT Media proposes
to use Rs 764 million for capital expenditure,
Rs 760 million for sales and marketing
and Rs 100 million for its FM radio business -
which it plans to get into very soon.
During the IPO launch announcement,
Shobhana Bhartia, Vice-Chairperson, HT
Media, was present along with the entire top
management of the company. While addressing
the media, Bhartia said, "Over the years,
The Hindustan Times has established itself as
one of the strongest brands in the print media
sector. The company has witnessed constant
improvements in terms of readership, circulation
and financial performance. With our geographic
expansion plans, including our recent
successful launch in Mumbai, we believe we
are well poised for exponential growth. Our
vision is to build HT Media into the leading
media company in terms of quality and size."
Bhartia sounded optimistic about the promising
prospects for the media sector as a
whole. On the company's decision of being
listed, she added, "There would be challenges
in our way but we hope to conquer them.
Looking at The Hindustan Times' background
and track record; the width of our management
team; and the buoyant and continued
growth of the media, we are extremely positive
about listing our company and going public
on the bourses.”
Targeting the lucrative Mumbai market
With the launch of the Mumbai edition of
Hindustan Times on July 14, 2005, the second
largest print media company has definitely
shown the intent to grow its national footprint
and exploit the most lucrative advertising
market in India.
Talking about the launch of the Mumbai edition
and the prospective competition that will
come in the form of DNA, Rajiv Verma, CEO,
said, "We have got an overwhelming response
from both our readers as well as our advertisers.
Till now, the print market in Mumbai was
dominated by a single player but we feel that
in a mature market like Mumbai there is space
for more than one player to exist and do well."
The Hindustan Times hopes to leverage its
existing capabilities, brand recognition, its
leadership position in Delhi and strong relationship
with advertisers for its success in the
Mumbai market.
Verma believes that the entry of The
Hindustan Times into the Mumbai market
will offer to advertisers and readers a compelling
alternative. The Mumbai market has
the largest share of print media advertising
expenditure in India. (Source: TAM Adex)
Proposed new media initiatives from The
Hindustan Times stable
Also on the cards is entering into new media
businesses: like launching a business/financial
newspaper and other English editions in key
high-growth markets in southern India. These
moves are being seen as some of the key initiatives
lined up from the media group. HT
Media Ltd. also plans to make a timely foray
into the FM radio services with the new
licensing regime having been announced by
the Government. As part of its strategy to
enter into new ventures, in December 2004,
the company entered into a memorandum of
understanding with Richard Branson's Virgin
Radio Asia.
Commenting on the time frame set by the
company for the launch of the FM radio station,
Verma said, "It will be done sooner than
later. We are looking at a period of over six
months to a year. The radio scene is currently
very cluttered where one can't differentiate
between one station from other but with the
new licensing regime getting a nod from the
Government things should get better." The
cities being considered right now for launching
the services are Mumbai and Delhi, said
Verma.
The group also plans to make a foray into the
Internet space sometime in the future. The
newspaper currently has an ePaper offering
for its readers, users need to pay a subscription
fee in order to access it.
News channel can wait; focus on the
Hindi print market
When asked about venturing into the TV news
channel business, Bhartia ruled out the possibility
in the near future. She added, "The company
will look at consolidating its business in
two-three years before diversifying into TV
media."
The publisher of the English daily
Hindustan Times and the Hindi daily
Hindustan, in the meantime, intends to
increase its share in the Hindi print market,
which according to Verma offers substantial
opportunities.