The Blackstone Group on Wednesday said it will invest Rs 225 crore (around $50 million) in Jagran Media Network Pvt Ltd, which holds a majority share in Jagran Prakashan Ltd (JPL). Jagran Media Network will file for necessary approvals with the Foreign Investment Promotion Board (FIPB), according to a press statement issued by JPL. Meanwhile, JPL shares surged 4.05% to close at Rs 121.90 on the Bombay Stock Exchange (BSE) on Wednesday.
Blackstone Advisors India Pvt Ltd CMD Akhil Gupta said, “Print media in Indian languages is poised to experience significant growth in the coming years, driven by increasing personal consumption levels in the tier II/III cities as well as rural India.” He further added that JPL, with its leadership position in the Indian print media space and its excellent management team, is well placed to capitalise on this opportunity. “Our experience in the media sector in India and globally will enable us to be value-added partners to management and strengthen the company’s leadership position,” he added.
Commenting on the tie up, Mahendra Mohan Gupta, CMD, JPL said: “I am glad to partner with one of the largest private equity investors in the world. Their interest in sharing knowledge with the management and their understanding of the media industry will add value to JPL in many ways for the benefit of its shareholders.”
The Group’s flagship brand Dainik Jagran, publishes 37 editions and more than 200 sub-editions across 11 states, has maintained its position as India’s widest read newspaper for the last six years. Private equity firms invested about $2,000 million across 56 deals in India during the quarter ended March 2010, according to a study by Venture Intelligence, a research service.
The amount invested during the latest quarter was the highest in the last six quarters. The figure was significantly higher than that during the same period last year (which witnessed $620 million being invested across 58 deals) and also the immediate previous quarter ($1,681million across 102 deals).