Top Story


Home >> Media - Radio >> Article

Jagran Prakashan values Radio City at approx Rs 2000 crore?

Font Size   16
Jagran Prakashan values Radio City at approx Rs 2000 crore?

Music Broadcast Ltd (MBL), which operates radio stations under the brand name Radio City, recently announced that it will launch its IPO on March 6 at a price band of Rs 324-333 per equity share.

The IPO is a combination of a fresh issue of shares for up to Rs. 400 crore and an offer for sale of up to 26,58,518 shares (which would bring in around Rs. 88.52 crore taking the upper value of the price band). Promoter Jagran Prakashan, which currently holds  89.40 per cent stake in Music Broadcast Ltd., will see its stake reduced to 74 per cent post IPO. However, as per the Red Herring prospectus, Jagran Prakashan Ltd. will not be offering any of its own shares in the company for sale.

It would seem that Jagran Prakashan is valuing MBL at around Rs 2000 crore. According to sources, Jagran Prakashan had bought Radio City for near to Rs 400 crore in 2015. This would mean it values the company at nearly five times the amount it paid for (post money) and about Rs 1600 crore (approx) pre money, though the company has not confirmed anything.

Speaking to the media after making the announcement,   RK Agarwal, Group CFO of Jagran Prakashan said that the rationale behind the IPO was to strengthen the capital infrastructure. “The repayment of debt to the promoter (Jagran Prakashan) is just one outcome of the exercise,” he said.

Pointing out that post Phase III, private FM would extend to 302 towns and cities from the current 86, making the medium truly national, Apurva Purohit, Director of Music Broadcast Ltd., said that the radio sector is expected to grow at a CAGR of 16.9 per cent (2015-2020). Though she did not give details about Radio City’s growth expectations going forward, she informed that currently the company is seeing ad revenue grow at CAGR of 15 per cent.

Radio City has operations in 37 cities. It acquired 11 new stations during the recent Phase III auctions, nine of which have started operations. The remaining two, Patna and Bikaner, are expected to become operational by March this year, said Purohit.

“Radio is still in a nascent stage and there is a lot of scope for growth in existing and new geographies. As a medium, radio is slated for a quantum leap and this will be our focus,” she said.

Since the takeover by Jagran Prakashan, Music Broadcast Ltd. has also gained access to Radio Mantra, which operates in eight cities. Purohit told us that all radio properties would be consolidated under the Radio City brand name in the near future.

Tags Music Broadcast Ltd IPO Jagran Prakashan Radio City Apurva Purohit RK Agarwal Radio FM Radio Mantra

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

Ushering the launch with a campaign titled ‘The New Way to Get Rich’ showcasing how technology gets millennials closer to their financial dreams

Ogilvy and Love Matters conceptualised a campaign that aimed to change the conversation and imagery that is associated with the LGBTQ community and lesbians in particular