HT Media to use Rs 90 crore of fundraise to cut debt burden

MUMBAI: Sometimes the biggest growth story begins with trimming the baggage. HT Media is choosing balance-sheet repair over expansion, with the publisher of Hindustan Times, Mint and operator of Fever FM planning to channel almost its entire proposed Rs 95.3 crore fundraise towards reducing debt and strengthening its financial position.

According to the explanatory statement accompanying its Extraordinary General Meeting (EGM) notice, the company’s board has approved a preferential issue of warrants to lower debt servicing costs, improve profitability, optimise its capital structure and enhance its ability to raise capital in the future.

The proposed utilisation of funds leaves little doubt about the company’s immediate priority. Of the Rs 95.3 crore expected to be raised, Rs 90 crore more than 94 per cent has been earmarked for debt repayment, while the remaining Rs 5.3 crore will be used for general corporate purposes.

The company expects to deploy the proceeds within six months of receiving the funds. However, the capital will be infused in stages, as investors will have up to 18 months to convert their warrants into equity shares.

The fundraise is structured through the issuance of up to 3.88 crore warrants at an issue price of Rs 24.57 per warrant, aggregating Rs 95.3 crore. Investors will pay 25 per cent of the issue price upfront, with the balance payable upon conversion.

The proposed subscribers include promoter entity The Hindustan Times Ltd., which will invest around Rs 33 crore, alongside Tremis Consultancy LLP, Kiran Vyapar Ltd., Zafar Ahmadullah, Zapfin Teknologies Pvt. Ltd. and Peanence Commercial Pvt. Ltd.

Rather than positioning the capital raise as a growth exercise, HT Media has framed it as a strategic financial reset. By lowering borrowings and reducing financing costs, the company aims to improve profitability, strengthen its balance sheet and create greater flexibility for future investments and fundraising opportunities.

The company has also said that, pending utilisation, the proceeds will be parked in deposits with scheduled commercial banks and will not be invested in high-risk or capital-eroding instruments.

The preferential issue also reflects continued promoter backing. While The Hindustan Times Ltd. will remain the largest subscriber, the participation of non-promoter investors will result in promoter shareholding declining from 69.5 per cent to 64.52 per cent after full conversion of the warrants, with non-promoter ownership increasing accordingly.

The move signals that, in an industry navigating shifting advertising cycles, changing consumer habits and continued digital investments, HT Media is placing financial resilience ahead of rapid expansion, a strategy aimed at giving the company firmer footing for its next phase of growth.