Music Broadcast's IPO subscribed 51% on opening day

Music Broadcast Ltd's initial public offering (IPO), which opened on Monday, was subscribed 51 percent of the offer.

According to data from stock exchanges, out of about 1.04 crore shares offered, 53.17 lakh shares were subscribed on the opening day while shares reserved for retail investors were fully subscribed.

Non-institutional investors' category was subscribed 3 percent but no subscription was attracted in the qualified institutional buyers' category.

The IPO, which is in a price band of Rs 324-333 per share, will close on Wednesday.

On Friday, the company had raised Rs 146.5 crore by allotting shares to anchor investors as part of anchor book allocation and shares were given to anchor investors at Rs 333 each.

Anchor book is the part of an IPO that bankers can allot to institutional investors on a discretionary basis and this subscription usually opens a day before the launch of an IPO, acting as an indicator of institutional investor interest.

Investors who participated in the anchor book allocation were funds from HSBC, Reliance Capital, Nomura, DSP BlackRock, ICICI Prudential, HDFC Standard Life Insurance, Franklin Templeton, Birla Sun Life Insurance and among others.

The Radio City FM station operator plans to raise up to Rs 400 crore in primary capital, while existing investors will sell shares worth Rs 86-88.5 crore through an offer for sale.

The company plans to use the proceeds of the share sale to repay debt and for general corporate purposes.

--IANS

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