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Music Broadcast IPO subscribed over 39 times

Shah Junaid/VCCircle

The initial public offering (IPO) of Music Broadcast Ltd, which runs FM radio channel Radio City, was subscribed more than 39 times at the end bidding on Wednesday, with investors continuing to lap up the stock.

The offering of 10.45 million shares, excluding the anchor investors’ portion, received bids for almost 412 million shares, stock-exchange data showed.

Non-institutional investors, such as corporate houses and wealthy individuals, led bidding as the portion set aside for them was covered 109 times.

The quota for institutional buyers was subscribed almost 40 times while the retail book was covered nine times.

The IPO had crossed the halfway mark on the first day of the issue on Monday and was covered 2.18 times on the second day.

Music Broadcast joins hypermarkets operator Avenue Supermarts Ltd and stock-exchange operator BSE Ltd in floating successful public offerings this year. The three IPOs extend the good run after a blockbuster 2016 when fundraising by companies via initial share sales jumped to a six-year high of Rs 26,500 crore.

The IPO market in India picked up pace after four years of slow activity in mid-2014 when the BJP-led government took over. In 2015, 21 companies had raised about Rs 14,000 crore, as per stock-exchange data.

The IPO of BSE, in January this year, was oversubscribed 50 times while Avenue Supermarts’ issue was fully covered on Wednesday, the first day of the share sale, thanks to strong demand from investors.

Music Broadcast's IPO is also the first by a radio operator in over a decade. In November 2005, Times Group-controlled Entertainment Network (India) Ltd, which runs Radio Mirchi, had gone public. Entertainment Network commands a market valuation of about Rs 3,992 crore ($599 million), stock-exchange data show.

Music Broadcast, which is majority-owned by Blackstone-backed Jagran Prakashan Ltd, had on Friday raised Rs 146.55 crore ($22 million) by selling shares to 17 anchor investors at Rs 333 apiece. Those who bought the shares include funds of Morgan Stanley, BlackRock, Franklin India, Nomura and Pictet Mauritius.

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(Planet Radio City, Radip City 91.9 FM)

Music Broadcast Pvt. Ltd. owns and operates a frequency modulation (FM) radio channel 91.1 under the name Radio City, online music portal planetradiocity.com. The firm offers radio streaming services that includes songs, videos, lyrics, news, musicopedia, interviews, slide shows, and wallpapers through a mobile application. It also operates an online radio station named Fun ka Antenna. The company was founded in 1999 and is based in Mumbai, Maharashtra. The company operates as a subsidiary of Jagran Prakashan Ltd.

(Dainik Jagran, Inext)

Jagran Prakashan Ltd. is a media and communications company. It is engaged in printing and publishing newspaper and magazines under the brand name Dainik Jagran and Inext. The firm offers newspapers, outdoor, internet, magazines, below the line marketing solutions, and mobile value added services. The company was founded in 1942 and is based in Kanpur, Uttar Pradesh. Jagran Prakashan Ltd. operates as a subsidiary of Jagran Media Network Investment Pvt. Ltd.

(BSE)

BSE Ltd. (formerly Bombay Stock Exchange Ltd.) owns and operates stock exchange. It offers products and services in cash equities, futures, options, swaps, exchange-traded products, bonds and market data, Corporate Data and Historical Data etc. It provides investor services, BSE on-line trading and BSE training institute services. The firm also provides an efficient and transparent market for trading in equity, debt instruments, derivatives, mutual funds. The company has a platform for trading in equities of small-and-medium enterprises (SME) and BSE Hi-Tech (Institutional Trading Platform for young fast-growing companies to list itself and can meet potential investors to raise funds). The firm also provides depository services through its central depository services Ltd. (CDSL) arm and a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. The company was founded in 1875 and is based in Mumbai, Maharashtra with additional office in New Delhi.

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