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Radio Mirchi announces IPO, files draft Red Herring Prospectus with Sebi

15-November-2005
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Radio Mirchi announces IPO, files draft Red Herring Prospectus with Sebi

Radio Mirchi, which has been engaged in a high-decibel media campaign recently, has filed its draft Red Herring Prospectus with the Securities and Exchanges Board of India (Sebi) to enter the capital market with an initial public offering. Radio Mirchi, which comes under Entertainment Network (India) Ltd (ENIL), is promoted by Bennet, Coleman & Company Ltd, the flagship company of the Times Group.

When asked whether he was surprised by the development, Sunder Raman, GM (Delhi), Mindshare, said, “It is a surprise but a pleasant one. With the revenue sharing formula declared by the government, the costing of FM channels has to be transparent. The market is buoyant at this moment and it is the right time for Radio Mirchi to hit the market. I think we can expect more action in the same line in the near future.”

The company proposed to enter the capital market with an issue of 12,000,000 equity shares of Rs 10 each for cash at a premium to be decided through the book building process, the company said in a statement. Besides this, the company has also earmarked 1,200,000 equity shares to be issued as a green shoe option.

ENIL has FM radio stations in all four metros of Delhi, Mumbai, Chennai and Kolkata as well as in Ahmedabad, Indore and Pune. Besides, Radio Mirchi, ENIL has an active event management business (360º) and out-of-home media business (Times OOH Media).

ENIL had total income of Rs 76.22 crore in fiscal 2005. Total income in the first six months of the current fiscal ended September 30, 2005 was Rs 49.46 crore, which represented an increase of 55.9 per cent over the corresponding period of the preceding year, the company said.

JM Morgan Stanley and Enam Financial Consultants have been appointed as the lead managers for the issue.

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