Hindustan Times Public Float Drives Up Media Valuations

Agencyfaqs.com: The valuation of the media industry has shot through the roof with HT Media setting its initial public offer (IPO) price at Rs 530 for a share of Rs 10. Its book-built public issue hit the market on August 4. At a price of Rs 530 a share, the market valuation of HT Media will be around Rs 2,500 crore ($600 million). The market cap will be even higher as analysts say the listing can be at a premium.
HT Media will top the market cap ladder in the sector, which is now occupied by NDTV at Rs 1,433 crore. Deccan Chronicle, which went public in December 2004, is currently valued at Rs 1,207 crore. TV Today is valued at Rs 624 crore and Mid-day Multimedia at Rs 333 crore.
According to Ajit Rajagopalan, vice-president, Keystone India, the media sector has high potential but has under-performed in the past because of very few large integrated players existed. “With the overall upbeat performance of the stock market and the entry of players like Hindustan Times, the media sector is likely to see more merger and acquisition activities in the future,” he said. Keystone India, a firm engaged in facilitating investments and trade between India and the US, focuses on the media segment.

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