Business Standard: Hindi media is attracting serious money. Dainik Bhaskar, a regional language newspaper group which has significant presence in central India, will receive Rs 150 crore ($33.33 million) funding from private equity firm Warburg Pincus for giving away 7 per cent stake. This puts the valuation of the company at Rs 2143 crore ($476 million).
Another major foreign investment in a Hindi language newspaper group was that of UK’s Independent News & Media‘s acquisition of 26 per cent in Kanpur-based Jagran Prakashan Ltd (Dainik Jagran) for Rs 150 crore (-‚¬25.5 million). This deal happened in 2004. Warburg’s is the second major deal, and is at a much higher valuation compared to that of Dainik Jagran.
Dainik Bhaskar has a presence in eight states with a daily circulation of 3.5 million copies, and is part of the Bhaskar Group, which has presence in the media, textiles, fast-moving consumer goods and oil and solvents. Sudhir Agarwal, managing director, Bhaskar Group said, -€œThe deal has been firmed up and will close within a week.-€
Dainik Bhaskar’s valuation is close to another listed company, HT Media, which has a market cap of Rs 2124 crore ($472 million). Deccan Chronicle’s has a market cap of Rs 2031 crore, followed by Jagran Prakashan (Rs 1508 crore), Mid-day Multimedia (Rs 320 crore) and Sandesh (Rs 94 crore).