DB Corp lists at Rs 254/share on NSE

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DB Corp lists at Rs 254/share on NSE

DB Corp, the publisher of leading Hindi daily Dainik Bhaskar, has listed at Rs 254 per share as against issue price of Rs 212 per share.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS See fair value of DB Corp at Rs 234/sh: Angel Broking Dealers expect premium of around Rs 25/sh for DB Corp See DB Corp fair value at Rs 240-245/sh: Udayan Mukherjee DB Corp BSE | NSE 31/05/12 Are Mutual Funds betting on DB Corp? Other Stocks in this news Cox & Kings |

DB Corp , the publisher of leading Hindi daily Dainik Bhaskar, listed at Rs 254 per share on the National Stock Exchange (NSE) today as against issue price of Rs 212 per share. At 9:19 hours IST, the share was trading at Rs 255, a premium of 20.28% over its issue price, after seeing an intraday high of Rs 274 and low of Rs 250.55. It has seen a turnover of Rs 158 crore.

On the BSE, the share was trading at Rs 255.80, after seeing a day's high of Rs 273.90 and low of Rs 235.50. It opened at Rs 250.

The company had come out with an initial public offering (IPO) of 1.81 crore shares and received overwhelming response from investors and saw highest subscription among the IPOs of 2009. It was subscribed 39.54 times on the back of support from qualified institutional investors (QIBs). The price band for the issue was at Rs 185-212 per share and the issue was opened during December 11-15, 2009.

Many stocks that listed on the stock exchanges in the latter part of 2009 failed to take off amid criticism that the IPOs were priced above fair value. Most experts had, however, singled out DB Corp as a stock that was priced cheaply enough to give gains for investors.

"We are happy that the DB management left something on the table for investors," said Manish Chokhani of Enam Securities, one of the book managers for the issue.

"DB Corp is the good story of India consumption," Chokhani said, adding he was bullish on media plays in the country, especially the vernacular ones.

The company intends to use the proceeds of the issue for expanding and strengthening its existing markets, launching publications in new markets and upgrading its existing machinery in some centres, apart from repayment of its term loans.

DB Corp publishes seven newspapers, 48 newspaper editions and 128 sub-editions in three languages (Hindi, Gujarati and English) across 11 states. It is one of the leading print media companies of India, with an impressive footprint, circulation and readership. Its strengths lies in strong established brands in Indian print media businesses, geographical reach and leadership in markets.

One of the book managers for the issue---Manish Chokhani, Director of ENAM Securities spoke to CNBC-TV18 on the listing of DB Corp.  

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