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Monday October 6, 2:44 PM
TV Today plans to hit primary market with an IPO
By anshuman padiyar
India Today Group subsidiary TV Today, which runs the Aaj Tak channel, is likely to come out with an initial public offering, IPO. Reliable sources in the company told CNBC-TV18 that the issue would most probably come out in November.
Aaj Tak has completed two years on air and is the market leader in Hindi TV news. TV Today's MD Aroon Purie confirmed the company's plans for an IPO but did not part with details.
"We are in the process of finalising that and the investment bankers are looking at it. I can't give a final date right now. It's a good market to be in but we have our own momentum and login, which we are following," Purie said.
India Today Group will also be the new publisher of Reader's Digest magazine in India after it bought over RDI Print & Publishing from the Tatas. Tatas bought 100% stake in RDI Print & Publishing in 1979 for Rs 1.5 lakh (Rs 0.15 million).
Mumbai-based RDI Print & Publishing has published Reader's Digest for the past 25 years. The magazine, which has been in India for over 40 years, is currently published only in English. Reader's Digest has a circulation of about 500,000, and Purie feels there is still scope to expand the readership base.
"It has a universal appeal and subscribers have a great loyalty to the magazine. It has a wide base across India. In fact, today's Indian middle class requires a family magazine. It is a tremendous brand and publication which we will be able to expand," he said.
The Reader's Digest sale was stuck for a long time over royalty issue. Purie said there was no royalty hitch, though negotiating the deal was a bit complicated. He also said that they would be paying higher royalties than the Tatas.
"We were negotiating with Reader's Digest America on one side and the Tatas on another side. So both the negotiations had to be in tandem. That is why took so much time. The royalty issues have been resolved. There is no problem in that," he said.
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