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Amar Ujala Publications plans to raise Rs 300 crore through IPO

13 Oct 2015 Evaluate

Amar Ujala Publications is planning to enter into capital market in November 2015 to raise Rs 300 crore through a mix of fresh issue of shares and secondary sale by shareholders. The proposed offer size of Rs 300 crore would result in about 30% dilution of equity capital.

The promoters of Amar Ujala are likely to offer 15% stake through the initial public offer (IPO). In addition, Pun Undertaking, a strategic investor in Amar Ujala, is expected to sell 9% stake, lowering its ownership to 9%. The fresh issue of shares is expected to account for another 6% of the share sale. AXIS Capital and IDFC Securities have been appointed lead managers for the issue.

Amar Ujala Publications, founded in 1948, has over 3,000 employees. It is India's fourth largest Hindi daily with 19 editions in seven states and one Union Territory. It reported a net profit of Rs 41 crore on a turnover Rs 570 crore in the nine months to December 2014.

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