Millennium Post

Radio City FM operator's Rs400 cr IPO to open on Mar 6

Music Broadcast Ltd, a Jagran group firm that runs Radio City FM channel, will hit the capital markets on March 6 to raise more than Rs 400 crore through initial public offer.

The IPO comprises fresh issue of equity shares up to Rs 400 crore and an offer for sale of up to 26.59 lakh equity scrips. It will close on March 8, Music Broadcast Ltd (MBL) said in a statement.

Proceeds from the sale would be primarily used for redemption of listed non-convertible debentures.

Music Broadcast Ltd, which owns and operates Radio City, has a pan India presence with radio stations in 37 cities.

The red herring prospectus filed by MBL with Registrar of Companies, Mumbai, was approved on Thursday, Jagran Prakashan Ltd said in a regulatory filing.

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 the public offer.

ICICI Securities Ltd is the sole book running lead manager for the Offer. The equity shares of the company are proposed to be listed on the BSE and the National Stock Exchange (NSE).

For the 6-month period ended September 30, 2016, Music Broadcast Ltd generated total revenue of Rs 138.21 crore and net profit of Rs 29.76 crore.
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