Aimed at fulfilling its growth plans and clearing arrears, Hindustan Media Ventures Ltd (HMVL), which publishes the third largest Hindi daily in the country 'Hindustan', declared that it will launch its initial public offer (IPO) of Rs 270 crore on July 5.

The IPO offer will close on July 7.

Mr. Piyush Gupta, the CFO of HT Media Ltd which is the promoter of HMVL, said that the price band for each equity share of Rs 10 has been fixed between Rs 162 and Rs 175.

The floor price is 16.2 times of the face value and the cap price is 17.5 times of the face value.

Mr. Gupta also said that bids can be made for minimum of 40 equity shares and its multiples subsequently.

Through this public issue, the company plans to establish a new publishing division of Rs 66 crore, clear its arrears of Rs 135 crore and improve the subsisting facility through Rs 55 crore.

'Hindustan' is the number one selling Hindi newspaper in Bihar and Jharkhand, number two in Delhi and number three in Uttar Pradesh.

The Book Running Lead Managers are Edelweiss Capital Ltd and Kotak Mahindra Capital Company Ltd.

HT Media Ltd will be diluting up to 23% of its holding in HMVL via IPO. (With Inputs from Agencies)