In what may be a big-ticket infusion of foreign investments in the print media sector in recent times, foreign institutional investors, non-resident Indians and foreign venture capital investors (FVCIs) are set to pick up to 26% stake in Hindustan Media Ventures Ltd (HTMVL) for Rs 350 crore.

The company is also expected to launch its initial public offer in next few months to raise around Rs 300 crore. Experts say, in next six months, HTMVL is likely to be sitting on over Rs 650 crore of cash which will help it fasttrack its expansion plans.

HTMVL is the Hindi arm of HT Media, the publisher of leading Hindi daily Hindustan Times. It publishes the Hindi

Hindustan newspaper, Nandan and Kadambini Hindi magazines and the respective portals amongst others.

The infusion of 350 crore of foreign investments in HTMVL will be possible after the foreign investment promotion board (FIPB) is said to have given its nod to a proposal to this effect from HTMVL.

According to company sources, the funds would be used to drive the its massive expansion plans in the existing states of Uttar Pradesh, Bihar, Uttarakhand, Jharkhand and the national capital region (NCR) as well as new markets. Industry sources say HTMVL could enter Rajasthan and Madhya Pradesh, the bastion of rivals Dainik Bhaskar and Nai Duniya.

HTMVL recently filed a draft red herring prospectus with the regulator for the maiden public issue.

However, in what may come as a setback to another major Hindi newspaper group ?? Jagaran Media ?? its proposal to attract Rs 225 crore of foreign investments from the private equity firm, Blackstone, has hit the FIPB hurdle once again. According to informed sources, the information and broadcasting ministry, the nodal ministry for the print and broadcast sector, has asked for more time to examine in detail the shareholders agreement between Blackstone and Jagran Media Network (JMN), an unlisted company.

According to its proposal sent to the FIPB, Blacstone GPV Capital Partners, Mauritius, will pick up a 12.83% stake in JMN for Rs 225 crore. JMN is also in the process of making an application with the Reserve Bank of India for being registered as a non-banking finance corporation.

However, the foreign investment board, at its meeting in early May, asked the I&B ministry to ascertain whether technically an unlisted company acquiring 55-63% in a listed company would attract Sebi approval from exemption from an open offer. The I&B ministry has sought more time to study the fine print of this proposal which has resulted in the deferment of JMN?s proposal, sources said.