Independent News & Media's (IN&M) stake in Indian newspaper group Jagran Prakashan Limited (JPL) has climbed in value by 220 per cent over the past eight months.

IN&M said yesterday that JPL successfully completed its flotation, with the initial public offering (IPO) oversubscribed 14.18 times.

The firm floated at 320 rupees (€5.99) per share, which was at the upper end of the range that the market had expected. This price values JPL at almost €310 million and leaves IN&M's stake at €62.5 million.

Early indications had suggested JPL would be worth €255-€306 million upon flotation.

IN&M bought 26 per cent of JPL for about €27 million in June last year.

The IPO has diluted the stake to 20.2 per cent, although IN&M is thought to have an appetite for raising it again.

India's media laws restrict foreign ownership of Indian newspapers to 26 per cent.

JPL offered 11.5 million shares in the market, including a greenshoe option - a provision allowing the underwriters of the offer to buy shares - of 1.5 million shares.

The firm received more than 173,000 applications, most of which came at the highest end of the price band.

JPL publishes India's largest-selling Hindi language newspaper, Dainik Jagran, which has a total circulation of more than two million copies daily and a readership of more than 16 million.

The firm is expected to use the proceeds of its initial public offering to take investments in other publishing businesses and in areas such as outdoor advertising.

IN&M closed unchanged at €2.68 in Dublin last night.