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Music Broadcast shares jump on stock market debut

Press Trust of India  |  New Delhi 

Music Broadcast, the Jagran Group firm that runs Radio City FM channel, today made a strong debut with its listing at Rs 420, a 26 per cent premium to the issue price.

The opened on the at Rs 420 apiece, compared with the initial public offering price of Rs 333. During the intra-day trade, the stock had touched a low of Rs 368 before settling at Rs 373.15.

At the National Stock Exchange, the stock debuted at Rs 413, up 24 per cent over the issue price. However, after paring initial gains, it settled at Rs 372.

The strong start comes after Music Broadcast's IPO was subscribed more than 39 times earlier this month. It was the first initial public offering by a radio channel in 11 years.

Prior to that, Entertainment Network, which runs Radio Mirchi, had gone public in 2006 and was subscribed 40.61 times. DB Corp's was the most recent media sector IPO in 2009.

Music Broadcast's IPO comprised fresh issue of of up to Rs 400 crore and an offer for sale of up to 26.59 lakh scrips by the existing shareholders.

The price band for the offer was fixed at Rs 324-333. The public issue was managed by ICICI Securities.

Music Broadcast, which has a pan-India presence with radio stations in 37 cities, registered a total revenue of Rs 138.21 crore and a net profit of Rs 29.76 crore during the 6-month period ended September 30, 2016.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, March 17 2017. 16:57 IST