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Saturday, December 12, 2009

D B Corp Ltd IPO Information & IPO Evaluation

Incorporated in 1995, D B Corp Ltd is one of the leading print media companies in India, publishing 7 newspapers, 48 newspaper editions and 128 sub-editions in three languages (Hindi, Gujarati and English) in 11 states in India.

Company's flagship newspapers are Dainik Bhaskar, Divya Bhaskar and Saurashtra Samachar have a combined average daily readership of 15.5 million readers making them one of the most widely read newspaper groups in India.

DB Corp Ltd. IPO Information
Issue Open: Dec 11, 2009
Issue Close: Dec 15, 2009
Price Range: Rs. 185 - Rs. 212 Per Equity Share
Minimum Bid Size: 30 Equity Shares
Issue Size: 18,175,000 Equity Shares of Rs. 10
Face Value: Rs. 10 Per Equity Share
Issue Type: 100% Book Building
Maximum Subscription Amountfor Retail Investors: Rs.1,00,000

IPO Grading / Rating:
CARE has assigned an IPO Grade 4 to D B Corp Ltd IPO. This means as per CARE, company has above average fundamentals.

KR Choksey Securities IPO report on DB Corp IPO:
The company needs to be compared with the listed peers, with similar size and reach, and on these parameters, HT Media and Deccan chronicle are the fit peers to compare. The company is bit weak on financials when compared with its peers but has certain advantages over those two, in respect to face value of share at Rs 10 of the company as against Rs 2 of those two and second being high promoters’ stake at 86% against 64% of Deccan and 69% of HT Media.

Considering the presence of the company with 7 newspapers, 48 newspaper editions, 128 sub- editions, as also, 31 facilities spread across 31 cities, with combined average daily readership of 1.55 crore readers, the company would get placed in the upper league of print media with other listed peers. Even the debt burden of the company is comparable with other two listed peers.

Keeping all these facts in mind, issue at Rs 185, being its lower band, looks attractive while at Rs 212, being its upper band, does not leave anything on the table for the prospective investors, as better alternatives are available in the secondary market

IPO investors may bid at lower band of Rs. 185 for some listing gains.

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