The FM radio broadcaster, Music broadcast Ltd (better known as Radio City) is going to go public. This is the second broadcaster after Entertainment Network ltd to go public The IPO will open on 6th March 2017 and closes on March 8th just before the IPO of Dmart IPO which starts from March 8th onwards. They aims to raise around Rs. 488.53 Crores with a price band of Rs 324 – Rs 333 per Equity Share.
Music Broadcast Private Limited was incorporated on November 4, 1999, at Kolkata. The firm operates their radio stations under the name of brand “Radio City”. As on November 25, 2016, they have radio stations in 29 cities of India. In India, they are present in 12 out of the top 15 cities by population. As on March 31st, 2016, their radio stations reached out to over 49.60 million listeners in 23 cities covered by AZ Research.
They also have sales alliance with ITM Software & Entertainment Private Limited (“ITM”) which operates “Suno Lemon 91.9 FM” in Gwalior and Ananda Offset Private Limited (“AOPL”) which operates “Friends 91.9 FM” in Kolkata. They also operate their online web radio “Fun Ka Antenna” on their web portal (“Planet Radio City”), which was launched in 2010.
As on September 30, 2016 they operate 31 web radio stations through Planet Radio City in six languages, which have a listenership of 12.20 million. Their web radio stations offer 24 hours of internet radio along with few live RJ hosted shows. They also offers mobile app that plays various stations such as ‘Radio City Freedom’, ‘Radio City Electronica’, ‘Radio City Metal’ and ‘Radio City Smaran’, in various languages.Their radio content typically comprises of RJ shows and film music. They have also created popular radio shows such as ‘Love Guru’ and ‘Kal Bhi Aaj Bhi’ and pre-programming features such as ‘Babber Sher’ and ‘Joke Studio’.
As on September 30, 2016, they have hired 82 RJs, including two online web radio RJs, to conduct their shows. Their studios use IP based studio equipment and consoles which are free from noise pick-ups. They use linear encoding in their studios to ensure superior quality of audio on-air.
The firm operates as a subsidiary of Jagran Prakashan Limited. JPL is one of the leading media and communications groups in India with interests spanning across print, radio, digital, out of home and brand activations.
As on November 25, 2016, they operate 21 radio stations through their ‘Radio City’ brand, eight radio stations through ‘Radio Mantra’ brand and two sales alliances with ITM Software & Entertainment Private Limited which operates ‘Suno Lemon’ in Gwalior and Ananda Offset Private Limited which operates ‘Friends FM’ in Kolkata.
- Strong leadership position and pan-India presence in the radio industry which is poised for growth
- Popular content coupled with strong sales capability
- Effective and efficient internal operational systems and human resource management
- Strong financials and cash flows
- Experienced and qualified management team and are part of the Jagran group, a leading media group in India
- Capitalize on the growth opportunities in the radio industry
- Expanding to new markets with a focus on profitability
- Increasing listenership by constantly developing quality content
- Increase in revenues from the markets in which they operate Radio Mantra Stations
- Diversification of business and transformation to an audio entertainment company
Purpose of IPO
The objects for which Company intends to use the Net Proceeds are as follows:
- Redemption of Listed NCDs
- Early redemption of the JPL NCDs and repayment/pre-payment of JPL ICDs and
- General corporate purposes
From April to September, they earned revenue of 1,382.13 million, Rs.455.09 million EBITDA and 297.56 million as profit. They generate CAGR of 20.45%, 32.40% and 54.09%, respectively between FY13 and FY16.
There is only one listed competition namely Entertainment Network(India) ltd, which is owned by Times group and is better known by its brand name Radio Mirchi. The EPS of ENI is Rs 21 based on which the P/E is around 38.7. Compared to this, Music broadcast has a P/E of around 33.4
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