Independent News & Media's stake in Indian newspaper group Jagran Prakashan Pvt Ltd (JPPL) is on track to double in value in slightly more than six months.
JPPL, in which Independent took a 26 per cent stake in June last year, is due to debut on the Indian Stock Exchange later this month.
Indications of its float price suggest the firm will be worth €255-€306 million when it lists.
This would leave Independent's stake with a value of €53-€65 million. The company bought into JPPL for about €27 million.
Davy analyst Joe Burnell noted yesterday that JPPL's stock is expected to be offered at between 270 rupees (€5.10) and 324 rupees per share. This would value the publisher at up to 16.7 billion rupees.
The company is offering up to 11.5 million shares, including a green shoe option (a provision allowing the underwriters of the offer to buy shares) of 1.5 million shares. If the green shoe option is taken up, the offer will constitute just less than a quarter of the company.
Mr Burnell notes that this would see Independent's stake falling to slightly more than 20 per cent. Indian media laws restrict foreign ownership of Indian newspapers.
JPPL publishes India's largest-selling Hindi language newspaper, Dainik Jagran, which has a total circulation of more than two million copies daily and a readership of over 16 million.
The firm is expected to use the proceeds of its initial public offering to take investments in other publishing businesses and in areas such as outdoor advertising.
Shares in Independent climbed by three cent to €2.71 yesterday.
