Lokmat plans IPO; files DRHP with SEBI

In a bid to fund its expansion plans, Lokmat Media, which publishes the leading Marathi daily Lokmat, is all set to tap the capital market.

In a bid to fund its expansion plans, Lokmat Media Limited, which publishes the leading Marathi daily Lokmat, is all set to tap the capital market.

The Mumbai-based company, which publishes three newspapers -- Lokmat in Marathi, Lokmat Samachar in Hindi and Lokmat Times in English, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).

As per the DRHP, Lokmat Media will issue 13,829,064 equity shares of Rs 10 each for cash to existing equity shareholders of the company and will be offloading a 25 per cent stake through the IPO. However, the exact amount to be raised is yet to be disclosed.

The DRHP further states that the company will use the funds raised for expansion into new markets, brand building, promotion and marketing, pre-payment and repayment of loans, acquiring and co-producing Indian films -- primarily Marathi films as well as certain Hindi films, investment in IBN-Lokmat News Private Limited (IBNL) and general corporate purposes.

Kotak Mahindra Capital, Enam Securities and Link Intime (India) are helping the company in the process of raising funds from the market.

Present in the broadcasting business as well, Lokmat Media operates the Marathi news and current affairs channel, IBN-Lokmat that functions under IBNL -- a 50:50 joint venture between Lokmat Media and ibn18 Broadcast Limited.

Pertinent to note here is that after the issue, the stake of the company promoters -- Vijay Darda and Rajendra Darda (54.75 per cent), along with the family members (45.25 per cent) -- will be trimmed down to 41.07 per cent and 33.93 per cent respectively.