Jagran Prakashan Buyback 2021

(i) Jagran Prakashan Limited Incorporated in 1975, Jagran Prakashan Private Limited (BSE: 532705| NSE: JAGRANEQ)is a leader in Printing with the flagship newspaper brands – Dainik Jagran, Mid-Day, and Naidunia and Radio brand Radio City.

(ii) Print Media In Print Media Jagran Prakashan has 10 titles across 13 states in 5 different languages and a total readership of 68 mn, Jagran is the largest print media group in the country

(iii) Radio City 91.1 FM – India’s first & leading FM brand has been synonymous with the category since its inception in 2001. Without of the box innovations, ideas and well-researched music forming the crux of all the programming initiatives, Radio City 91.1 FM has been able to strike the right chord with the listeners making it a pioneer in radio in India. Innovative programming and marketing initiatives have helped Radio City pioneer FM in India. In phase III auction, the network has expanded its footprint by efficiently adding 11 new markets after carefully selecting towns with greater SEC AB population. With the addition of the new towns and addition of Radio Mantra towns, Radio City reaches to 39 most important towns of India dominating the most important advertiser markets.

(iv) Digital Media In Digital Media Jagran Prakashan has Leading across diverse genres of Hindi News and Education, Jagran New Media, with over 85 mn+ visitors is one of the top digital media platforms in the country.

(v) OOH, Jagran Engage provides bespoke Out of- Home marketing services across India. They offer a comprehensive portfolio of solutions to suit customized client requirements. Their services encompass planning, creative adaptations, competitive landscape, data on traffic count and post-campaign results.

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Offer Amount: ₹ 118 Crores
Date of Board Meeting approving the proposal: Mar 02 2021
Date of Public Announcement: Mar 02 2021
Price Type: Open Market
FV: 2
Buyback Price: ₹ 60 Per Equity Share

Details of Buyback:

March 02, 2021 at 01:15 p.m. which concluded at 02:45 p.m., approved the buyback of the Company's fully paid-up equity shares of face value of INR 2 (Indian Rupees Two Only) each (the "Equity Shares"), for an aggregate amount not exceeding INR 1,180,000,000 (Indian Rupees one hundred and eighteen crores Only) excluding brokerage, costs, fees, turnover charges, taxes such as buyback tax, securities transaction tax, goods and service tax (if any) and income tax, stamp duty, printing expenses, filing fees, advisors fees and other incidental and related expenses and charges ( collectively referred to as "Transaction Costs") ("Maximum Buyback Size") and at a price not exceeding INR 60 (Indian Rupees Sixty Only) per Equity Share ("Maximum Buyback Price"), payable in cash, from its shareholders/ beneficial owners ( other than those who are promoters, members of the promoter group or persons in control), from the open market through stock exchange mechanism.

Salient financial parameters:

Particulars(cr) Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 2,079 2,283 2,304 2,363 2,097
Expenses 1,489 1,643 1,721 1,829 1,665
Operating Profit 590 640 583 534 433
OPM % 28% 28% 25% 23% 21%
Other Income 94 41 47 41 32
Interest 55 35 27 26 33
Depreciation 122 129 136 128 146
Profit before tax 508 517 467 421 286
Net Profit 351 348 300 261 273
EPS in Rs 10.73 10.63 9.63 8.79 9.72
Source: Screener.in

How to Participate in buyback? 

Open market buyback

Profit from the buyback on the bases of acceptance Ratio: 

Open market buyback

Recommendation: 

Open market buyback

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