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Adlabs to hive off its radio division into a separate entity

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Adlabs to hive off its radio division into a separate entity

The Anil Dhirubhai Ambani Enterprise owned Adlabs on Friday formally made it public that it would hive off its FM radio business from the present parent company, Adlabs Films Ltd. The company informed the stock market that a meeting of the Board of Directors of the company would be held on April 22, 2006 to “consider the proposal for the reorganisation of the company and demerger of its FM radio business.”

In the FM Phase II bidding process, Adlabs had won 57 licenses for around Rs 170 crore. However, it surrendered 13 licenses to comply with the government norm, which allowed a single entity to have a maximum of 45 licenses. Under the Phase II FM expansion, the government had invited bidding for 337 licenses in 91 cities, out of which 280 stations were acquired by the interested players. Phase II saw aggressive bidding in the A+ and Southern zone cities.

Radio Mirchi became the first player to launch stations under the FM Phase II expansion in Jaipur, Bangalore and Hyderabad under the interim transmission agreement under which the government has allowed launching stations in the four metros and in the above mentioned cities.


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