Jagran Prakashan arm gets nod for Rs 400-cr IPO

New Delhi: Jagran Prakashan, the publisher of Hindi daily Dainik Jagran, today said its subsidiary Music Broadcast Ltd (MBL) has received regulatory approval of the DRHP for a proposed Rs 400 crore initial public offer (IPO).

"In relation to the proposed initial public offering of equity shares of our subsidiary, MBL, Jagran Prakashan Ltd has been informed that the red herring prospectus (DRHP) filed by MBL with Registrar of Companies, Mumbai, has been approved on February 23, 2017," the company said in a BSE filing.

The offer will be open for subscription to public on March 6 and close on March 8, 2017. In November last year, the company had said the IPO will comprise fresh issue aggregating up to Rs 400 crore and an offer for sale of up to 26,58,518 equity shares by certain existing shareholders of MBL.

Jagran Prakashan is not selling any of its shareholding in MBL under the offer for sale portion, it had said. Music Broadcast, which operates the Radio City FM station, had filed DRHP with Sebi in November last year.

It got 'observation' from the Securities and Exchange Board of India (Sebi) on February 9, which is necessary for any company to launch public offer and finally got Sebi approval on February 13.

The equity shares of the company are proposed to be listed on the BSE and the National Stock Exchange (NSE).