Speaking to The Financial Express, the finance director of the company MP Kapadia said: "Though the timing of the issue has not yet been finalised, the offer would be made sometime in the next three months."

The company, which publishes the afternoon daily Mid-Day in Mumbai, has already filed a draft offer document in this regard with the Securities and Exchange Board of India (Sebi) recently, Mr Kapadia added.

The issue is aimed at augmenting the working capital requirements of the company and to meet long-term capital requirements. The company would utilise around 65 per cent of the funds raised for its publishing, outdoor and internet business activities, while the remaining 35 per cent of the proceeds would be used for enabling and support services and to meet working capital requirements, Mr Kapadia said.

According to the offer document, lead managed by IL&FS Merchant Banking Services and Triumph International, the company would offer equity shares at a face value of Rs 10 each, aggregating to Rs 50 crore. This offer is being made through book-building route, whereby 90 per cent would be offered under book-building.

Of which 60 per cent of the issue size (Rs 30 crore) would be offered to qualified institutional buyers (QIBs), while 15 per cent (7.50 crore) would be allotted for non-institutional investors.

The balance 15 per cent (Rs 7.50 crore) would be made available for retail investors. The remaining 10 per cent (Rs 5 crore) would be offered under the fixed price portion.

The income from operations of the company has seen a major jump to Rs 51.9 crore in 1999-2000 from Rs 46 crore the previous year, and posted profit after tax of Rs 48 crore against Rs 27 crore.

As per the draft prospectus, the earning per share (EPS) on the existing equity for 1999-2000 is Rs 1.80 as against Re 1 during 1998-1999.

The company proposes to list its shares on the National Stock Exchange (NSE) and BSE.