This particular rating of 4 indicates that the DB Corp IPO company has sound valuations, and the fundamentals of the company are better than the above average fundamentals of similar companies.
What is the business & valuation of DB Corp?
DB Corp is in the business of print media and publication. It is spread across the length and breadth of the country and has major geographical presence. The company has excellent level of experience in the print business and that is what has granted it the rating of 4 by CARE to the DB Corp IPO.
The company publishes five newspapers – Dainik Bhaskar, Divya Bhaskar, Saurashtra Samachar and on a franchisee basis, DNA Money and DNA.
What are risks of DB Corp IPO?
The biggest risk is the print media going obsolete day by. Even the rating by CARE is said to be restricted by the risks associated with expansion in newer territories and its impact on the overall profitability of the company.
What is the price band of DB Corp IPO
The face value of DB corp shares is Rs. 10. The IPO will offer 188 lakh shares for sale. No information is currently available about the IPO price band and the offer date.
Where will the IPO proceeds be used?
The money raised from the IPO will be used for business expansion. Typically, investments will be made for modernisation of plant and machinery, repayment of working capital loans, prepayment of term loans and other general corporate purpose. That is one more problem with the IPO. A part of it is slated to go towards the repayment of loans and other debt.
‘Dainik Bhaskar’ is said to be the largest selling hindi newspaper and is present in various states like Madhya Pradesh, Chattisgarh, Rajasthan, Haryana, Punjab, Chandigarh and enjoys highest readership in most of the territories. DB Corps Gujarati newspaper ‘Divya Bhaskar’ is the highest circulated Gujarati daily in that state. The company also publishes five periodicals.
In addition to the newspaper and publication businesses, DB Corp through its subsidiaries operates an FM radio and internet portals which contain editorial content from daily editions of the company’s newspapers in the form of e-papers.
The promoters of DBCL are into print media business since four decades. The promoter group combined own 92.86 per cent of the total share holding of DB Corp and Cliffrose Investment --an affiliate of Warburg Pincus--owns the remaining 7.14 per cent.
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