10% upper circuit: Stock jumps after acquiring 14.85% stake in Lee Enterprises Inc
Synopsis: Quint Digital shares jumped sharply after the company announced a Rs 72 crore investment in the U.S., listed Lee Enterprises through a private placement, further deepening the company’s presence in the industry. The shares of this company engaged in the business of running websites through web, digital, or mobile media, and which may include […]
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Synopsis: Quint Digital shares jumped sharply after the company announced a Rs 72 crore investment in the U.S., listed Lee Enterprises through a private placement, further deepening the company’s presence in the industry.
The shares of this company engaged in the business of running websites through web, digital, or mobile media, and which may include various information, including current affairs, lifestyle, entertainment, etc, are in focus after making a notable investment in a US-listed media company. In this article, we will delve further into the details.
With a market capitalization of Rs 170 crore, the shares of Quint Digital Ltd. made a day high of Rs 37.98 per share (upper circuit), up 10 percent from its previous day’s closing price of Rs 34.53 per share. Over the past five years, the stock has corrected by nearly 57 percent, as compared to NIFTY 50’s positive return of 86 percent.
About the acquisition
Quint Digital Limited, through a stock exchange filing, announced it’s investing about $7.97 million, roughly Rs 72 crore, into Lee Enterprises Inc, a US media company listed on NASDAQ. Instead of picking up shares on the open market, Quint Digital’s going straight to the source with a private placement and buying the shares directly from Lee.
Once this deal is completed, Quint Digital will own 14.85 percent of Lee Enterprises, and the company is aiming to complete this process in the next 45 to 60 days, as long as it gets the usual approvals. Lee Enterprises plans to use the cash for working capital and other general corporate purposes.
If you’re not familiar, Lee Enterprises is a major player in American local news. They run daily newspapers, digital news sites, and all sorts of advertising products in 72 markets across 25 states. In FY25, they reported $0.56 million (Rs 5 crore) in revenue, so yeah, they’re a big deal in US local media.
For Quint Digital, this is a chance to expand its international reach and tap into a strong US media business built on subscriptions and ads. The company already runs several digital media and tech platforms like The Quint, Quintype, The News Minute, and Youth Ki Awaaz, and they’ve recently moved into global analytics and lifestyle media too. By teaming up with Lee Enterprises, Quint Digital is looking to build long-term value through global media assets and fresh digital growth opportunities.
Quint Digital Ltd has reported an operating revenue of Rs 7.79 crore in Q2 FY26, representing a 11 percent decline compared to Rs 8.77 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it declined by 2.5 percent from Rs 7.99 crore.
Regarding its profitability, the company reported a net loss of Rs 0.05 crore in Q2 FY26, which narrowed compared to a loss of Rs 0.79 crore in Q2 FY25. However, on a quarter-on-quarter basis, it declined significantly from a profit of Rs 4.5 crore.
Quint Digital stands at the forefront of digital and media technology in India, with a strong focus on AI. The company is known for creating innovative digital ideas supported by cutting-edge technology and engaging formats to drive impactful change. The major conglomerate of QDL offers various solutions ranging from News to Technology innovations. This has been further enhanced by the acquisition of ListenFirst Media, a New York-based premium social media and digital analytics platform, which enables QDL to provide AI-driven audience insights and engagement strategies.
The Quint, QDL’s flagship platform, was launched in 2015 with a mission to deliver trusted and innovative journalism. Meanwhile, Quintype, with its AI, powered editorial platform, enables seamless content creation for over 300 publishers globally. In addition to QDL, The News Minute is a brand focusing on independent journalism from the Southern part of India. Youth Ki Awaaz is a citizen media platform that amplifies the voices of India’s youth. Kisan India is devoted to comprehensive coverage of Indian agriculture.
Moreover, QDL recently entered into an exclusive franchise agreement with Time Out UK to launch Time Out India. The iconic global brand that inspires and enables people to experience the best of the city will bring high-quality, expert content and world-class cultural and culinary offerings to Indian consumers and advertisers.
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