Radio City FM operator's Rs 400-cr IPO to open on March 6

Music Broadcast, a Jagran group firm that runs Radio City FM channel, will hit the capital markets on March 6 to raise about Rs 400 crore through an initial public offering (IPO).

The IPO comprises fresh issue of equity shares up to Rs 400 crore and an offer for sale of up to 2.6.6 million 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.

MBL, 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 said in a regulatory filing.

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

ICICI Securities 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.

For the six-month period ended September, 2016, MBL generated total revenue of Rs 138 crore and net profit of Rs 29.8 crore.