Radio City FM owner's IPO oversubscribed 2.19 times

The initial public offering of Music Broadcast, a Jagran group firm that runs Radio City FM channel, was oversubscribed 2.19 times on the second day of the issue on Tuesday.

The IPO received bids for 2,29,35,240 shares against the total issue size of 1,04,80,784 shares, data available with the NSE till 1700 hrs showed.

The portion set aside for qualified institutional buyers (QIBs) was oversubscribed 1.06 times, while that of non institutional investors 24 per cent.

Retail investors category was oversubscribed 3.66 times.

Music Broadcast Ltd last week raised over Rs 146 crore by allotting shares to anchor investors.

The IPO comprises fresh issue of shares up to Rs 400 crore and an offer for sale of up to 26.59 lakh scrips. It has fixed a price band of Rs 324-333.

The initial share sale plan will close tomorrow.

Proceeds from the sale will be primarily used for redemption of listed non-convertible debentures. Music Broadcast, which owns and operates Radio City, has a pan-India presence with radio stations in 37 cities.

It had filed IPO papers with the Securities and Exchange Board of India (Sebi) in November last year and received 'observation' from it on February 9, which is necessary for a company to launch its public offer.

ICICI Securities Ltd is the sole book running lead manager for the offer.