DB Corp IPO subscribed a massive 39 times

Gets bids for 58.29 crore shares as against 1.49 crore shares on offer

The initial public offer (IPO) of DB Corp was subscribed a massive 39.11 times by 16:00 IST on the last day of the IPO on Tuesday, 15 December 2009, National Stock Exchange data showed. The IPO received bids for 58.29 crore shares as against 1.49 crore shares on offer.

DB Corp, the publisher of Hindi daily Dainik Bhaskar, has set a price band of Rs 185 to Rs 212 per share for the IPO. The company will offer a discount of Rs 2 per share to retail investors. Based on the price band, DB Corp would be raising around Rs 336-385 crore.

DB Corp has placed 32.71 lakh equity shares to nine anchor investors. The anchor investors, FID Funds (Mauritius), FIL Trustee Company, Nomura Funds Ireland- India Equity Funds, ICICI Prudential Life Insurance Company, IDFC Classic Equity Fund, Government of Singapore, Reliance Capital Trustee Company, India Capital Fund, BNP Paribas Arbitrage, all committed at the upper end of the price band of Rs 212, according to a notice sent to the exchanges.

DB Corp is in the business of print media, and publishes 7 newspapers, 48 newspaper editions and 128 sub-editions in three languages (Hindi, Gujarati and English) across 11 states.

Of the proceeds of the IPO, a chunk will be used to consolidate the company's position in existing markets by upgrading infrastructure. It will also enter some new markets by setting up publishing units.

DB Corp also plans to utilise Rs 110 crore to repay debt and Rs 20 crore to lower working capital loans. The company is focusing on increasing its reach in Tier II and III cities where consumption is growing at a faster pace and is higher than Tier I cities.