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Tag: Music Broadcast

  • Music Broadcast terminates acquisition deal with RBNL

    Music Broadcast terminates acquisition deal with RBNL

    MUMBAI: Jagran Prakash's Music Broadcast, which owns and operates Radio City, has terminated its deal with Reliance Broadcast Network Ltd (RBNL) for the acquisition of Big FM. The Rs 1,050-crore deal has been called off as both parties have not received approval from the ministry of information and broadcasting (MIB). 

    It was in 2019 that Music Broadcast entered into definitive agreements with Reliance Capital, Reliance Entertainment Networks, and Reliance Broadcast Network. As the long stop date under the definitive agreements has expired, the acquisition deal between the parties also gets terminated. 

    "This is in reference to our intimation dated 12 June 2019, informing about the decision of the company to acquire Big FM. Pursuant to Regulation 30 read with Schedule III (Part A) and any other applicable provisions of SEBI listing regulations, the board of directors of the company in their meeting held on 8 April 2021 has decided not to pursue the proposed investment in Big FM and will be terminating the definitive transaction documents with immediate effect," said Music Broadcast in a filing to BSE. 

    As a part of the acquisition deal, Music Broadcast had agreed to acquire a 24 per cent equity stake of RBNL by way of a preferential allotment. Later, subject to regulatory approvals, Music Broadcast would have acquired the remaining equity shares held by RBNL. 

    Music Broadcast, in a statement, revealed that the termination of acquisition will not have any impact on the ongoing business operations of the company. 

  • Music Broadcast plans IPO; to make buys

    Music Broadcast plans IPO; to make buys

    MUMBAI: Music Broadcast Private Limited, which operates one of the leading FM radio stations — Radio City — is planning to list. It is preparing to bring out a public offer of over Rs 500 crore comprising a fresh issue of Rs 400 crore and an offer for sale of 26.59 lakh equity shares by the promoters’ family.

    The proceeds from the issue will be utilised to retire debt of around Rs 150 crore, and the remainder to create a “war chest” for future acquisitions.

    Radio City 91.1 FM brand has been synonymous with the category since inception in 2001. Innovative programming and marketing initiatives have helped Radio City pioneer FM in India. In phase III auction, the network expanded its footprint by efficiently adding 11 new markets after carefully selecting towns with greater SEC AB population. With the addition of the new towns and addition of Radio Mantra towns, Radio City reaches to 39 most important towns of India dominating the most important advertiser markets. The first FM station will be launching internet radio streams in India with 30 stations and counting

    Music Broadcast promoter Jagran Prakashan CFO R. K. Agarwal said that they already filed the DRHP and post-regulatory approvals, and intend to hit the capital market. Most of the funds would be used to strengthen the capital structure so that a war chest was created to acquire more radio stations as and when opportunity arose, he added.

    Agrawal said it sees a lot of opportunities in radio as its business has been expanding at a CAGR of 15-16 per cent for several years, and has been operating at a margin of 33 per cent.

    Music Broadcast director Apurva Purohit said that the radio sector was the youngest in M&E but was growing fast. Radio’s share in the media and entertainment industry pie was only four per cent of the total advertisement market size due to the tardy pace of regulation, which otherwise could have been as high as 12 per cent.

  • Music Broadcast plans IPO; to make buys

    Music Broadcast plans IPO; to make buys

    MUMBAI: Music Broadcast Private Limited, which operates one of the leading FM radio stations — Radio City — is planning to list. It is preparing to bring out a public offer of over Rs 500 crore comprising a fresh issue of Rs 400 crore and an offer for sale of 26.59 lakh equity shares by the promoters’ family.

    The proceeds from the issue will be utilised to retire debt of around Rs 150 crore, and the remainder to create a “war chest” for future acquisitions.

    Radio City 91.1 FM brand has been synonymous with the category since inception in 2001. Innovative programming and marketing initiatives have helped Radio City pioneer FM in India. In phase III auction, the network expanded its footprint by efficiently adding 11 new markets after carefully selecting towns with greater SEC AB population. With the addition of the new towns and addition of Radio Mantra towns, Radio City reaches to 39 most important towns of India dominating the most important advertiser markets. The first FM station will be launching internet radio streams in India with 30 stations and counting

    Music Broadcast promoter Jagran Prakashan CFO R. K. Agarwal said that they already filed the DRHP and post-regulatory approvals, and intend to hit the capital market. Most of the funds would be used to strengthen the capital structure so that a war chest was created to acquire more radio stations as and when opportunity arose, he added.

    Agrawal said it sees a lot of opportunities in radio as its business has been expanding at a CAGR of 15-16 per cent for several years, and has been operating at a margin of 33 per cent.

    Music Broadcast director Apurva Purohit said that the radio sector was the youngest in M&E but was growing fast. Radio’s share in the media and entertainment industry pie was only four per cent of the total advertisement market size due to the tardy pace of regulation, which otherwise could have been as high as 12 per cent.

  • Star Group pays Rs 72 million for 20 % stake in Radio City

    Star Group pays Rs 72 million for 20 % stake in Radio City

    NEW DELHI: Star Group has received FIPB (foreign investment promotion board) approval for investing Rs 72.02 million to pick up a 20 per cent stake in Music Broadcast Pvt. Ltd. (MBPL), the company that operates FM radio business under the Radio City brand.

    The acquisition is being made through Mauritius-based Acetic Investments. Star had earlier exited from Radio City, having sold its stake for Rs 300 million. India Value Fund had acquired a controlling stake in MBPL.
    Indiantelevision.com was the first to report that Star was making a re-entry into the FM radio business by buying 20 per cent equity from India Value Fund (earlier GW Capital). With this, India Value Fund’s holding would drop from 75 per cent to 55 per cent.

    “It may be a buy back arrangement Star had with India Value Fund. Being the second largest player, the valuation of Radio City will be pretty high,” says a source who is tracking the industry.

    The government regulations permit only 20 per cent foreign direct investment (FDI) in the FM radio business.