Indian publishing group Jagran Prakashan Pvt Ltd (JPPL), in which Independent News & Media (IN&M) has a 26 per cent stake, is planning to raise $65 million (€55 million) in a flotation next year.
JPPL publishes India's largest-selling Hindi language newspaper, Dainik Jagran, which has a total circulation of more than two million copies daily and a readership of more than 16 million.
Independent paid €25.5 million to acquire its stake from the founding Gupta family last December in its first move outside English-speaking markets.
Sources said JPPL hopes to use the proceeds of the initial public offering (IPO), which is expected to take place by March 2006, to upgrade printing facilities and finance new business plans in outdoor media advertising and event management.
Company observers believe the shares being sold in the flotation are some of those owned by the Gupta family. Market observers do not expect IN&M to be a seller. However, IN&M could face difficulties if it tries to increase its stake by subscribing for shares as part of any flotation due to Indian media laws, which restrict foreign ownership of Indian newspapers.
The interest of foreign media companies in the fast-growing Indian market has been increasing since the Indian government relaxed its ownership laws in 2002. It now allows outsiders to buy up to 26 per cent in Indian publications. Those investing in India in recent years include Pearson, publisher of the Financial Times, and New York-based Dow Jones.
The print media in India is expanding due to increased advertising revenue and growing readership. Print advertising grew by 15 per cent last year to 54 billion rupees (€993 million). (Additional reporting by Reuters)
