As the first stage of the Phase III FM auctions finishes its first week, 80 channels in 55 cities combined to give a provisional winning price of Rs 714 crore against their aggregate reserve price of about Rs 391 crore. Thus the summation of provisional winning prices exceeded the total reserve price of the first batch by about Rs 163.48 Crore or 29.71 per cent. Rs 550.18 crore is the total reserve price of the first batch. In all 20 rounds of bidding have been completed with the auctions set to resume on Monday.
The auctions will continue till the auction activity requirement of 80% set at the beginning of the auction is met, which means that at least 80 per cent of the participants must participate in a round.
Among individual cities, the provisional winning price, which is the highest bid received, for one channel in Delhi crossed Rs 100 Crore. The city now has 2 active bidders as of Day 5. Delhi was expected to be among the most sought after frequencies but even earlier estimates have fallen short. The likes of Radio Mirchi, RED FM, Fever FM, etc. are all expected to be heavily interested in getting an additional frequency in the city.
Bangalore has 2 bids for its single frequency with the bid amount now in excess of Rs 54 crore. Chennai saw another suitor drop off with the city now having a single bid of just under Rs 30 crore for its one frequency. As the south market is supposed to be more mature than other regions, the two cities could still intense competition from regional as well as national players.
Mumbai also saw another suitor drop from the race with now two bids for its two frequencies with the provisional winning price at Rs 82.72 crore. Mumbai had been a little underwhelming though it has still crossed initial estimates. The asking price might just have proved a little too much for some of the suitors.
The dark horse of the auctions, Bhubaneshwar, saw a new bid, taking the total interested bids to 5 for its single frequency. Its provisional winning price at the end of the day was just under Rs 3 crore.
In the north, Jaipur’s two way battle continued with the winning price now reaching Rs 9.48 crore for its single frequency. Patna has 5 bids for its 3 frequencies with the provisional winning price in excess of Rs 11 crore. Lucknow has seen 2 bids for its 3 frequencies with the highest bid at Rs 14.55 crore. Chandigarh finally saw a bid of just under Rs 16 crore though there is still one more frequency in excess as other bids have been received so far.
Kolhapur has 4 bids for its 2 frequencies with the highest bid price at Rs 6 crore (approx). Another city in the state, Pune has also been seeing a lot of interest since the start of the auctions. On Day 5, Pune ended with 2 bids for its 2 frequencies with the closing price at Rs 31.49 crore. Nagpur too saw 3 bids for its 2 frequencies with the highest bid just over Rs 7 crore.
Ahmedabad now has 2 bids for its single frequency, down from 4 on the previous day and the highest bid of just under Rs 31 crore; an increase of nearly 5 crore over the previous day.
Guwahati is still caught in a three way tussle and remains the most sought after frequency in the north-east with a closing bid of Rs 95 lakh approximately.
Hyderabad remained static with three bids at Rs 18 crore, with no takers for its fourth frequency.