Jagran Prakashan gains after promoter group firm raises stake

Jagran Prakashan rose 3.31% to Rs 121.90 at 14:45 IST on BSE after a promoter firm raised stake in the company to 60.23% from 57.60%.

The company made the announcement during trading hours today, 23 June 2015.

Meanwhile, the BSE Sensex was up 64.72 points, or 0.23%, to 27,794.93.

On BSE, so far 39,000 shares were traded in the counter, compared with an average volume of 54,510 shares in the past one quarter.

The stock hit a high of Rs 122.50 and a low of Rs 117.45 so far during the day. The stock hit a 52-week high of Rs 154.40 on 24 December 2014. The stock hit a 52-week low of Rs 106 on 13 August 2014.

The stock had outperformed the market over the past one month till 22 June 2015, sliding 0.55% compared with 0.81% fall in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 7.27% as against Sensex's 1.88% fall.

The mid-cap company has an equity capital of Rs 65.38 crore. Face value per share is Rs 2.

Jagran Prakashan (JPL) announced that Jagran Media Network Investment (JMNIPL) (promoter/holding company of JPL) has purchased 86 lakh shares at Rs 118.65 per share, total consideration being Rs 102 crore (approximately). JMNIPL acquired the shares from Suvi Info-Management (Indore), a wholly owned subsidiary of JPL.

JMNIPL is a holding company of Jagran Prakashan. Mahendra Mohan Gupta and Family are promoters of JMNIPL and hold 87.18% in JMNIPL and remaining 12.82% is held by Blackstone GPV Capital Partners Mauritius VQ.

Prior to acquisition of shares, JMNIPL had equity shareholding of 57.60% in JPL as promoter/holding company. Post this acquisition of shares from Suvi Info-Management (Indore), the shareholding of JMNIPL in JPL has increased to 60.23%. Post the transaction, SUVI will hold 0.32% in JPL.

JPL said it will be the beneficiary of entire sale proceeds and the said amount will be utilized to reduce the debt and interest expense.

On a consolidated basis, net profit of Jagran Prakashan rose 135.12% to Rs 129.67 crore on 0.51% rise in net sales to Rs 411.66 crore in Q4 March 2015 over Q4 March 2014.

Jagran Prakashan is a leading media and communications group with interests spanning across newspapers, radio, magazines, outdoor advertising, promotional marketing & event management, and digital businesses. The Group publishes 12 newspaper brands with over 100 editions and 250 plus sub-editions from 36 different printing facilities across 15 states in 5 different languages.

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