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Radio City FM operator raises Rs 146-cr from anchor investors

Radio City FM operator raises Rs 146 cr from anchor investors

Music Broadcast Ltd, a Jagran group firm that runs Radio City FM channel, today raised over Rs 146 crore by allotting shares to anchor investors ahead of its initial public offering on Monday.

It has allotted 44,01,158 shares at Rs 333 per scrip to 15 anchor investors for a sum of Rs 146.56 crore, the company said in a statement.

The anchor investors include HSBC, Nomura, Morgan Stanley, ICICI Prudential Mutual Fund, Birla Sunlife Mutual Fund, UTI Mutual Fund and DSP Blackrock Mutual Fund.

The IPO comprises fresh issue of equity shares up to Rs 400 crore and an offer for sale of up to 26.59 lakh equity scrips. It has fixed a price band of Rs 324 to Rs 333.

The initial share sale plan will open for public subscription on March 6 and close on March 8.

Proceeds from the sale would be primarily used for redemption of listed non-convertible debentures.

Music Broadcast, which owns and operates Radio City, has a pan India presence with radio stations in 37 cities.

It had filed IPO papers with the Securities and Exchange Board of India (Sebi) in November last year and received ‘observation’ from it on February 9, which is necessary for a company to launch its public offer.

ICICI Securities Ltd is the sole book running lead manager for the offer. The equity shares of the company are proposed to be listed on the BSE and the National Stock Exchange (NSE).

For the six-month period ended September 30, 2016, Music Broadcast generated total revenue of Rs 138.21 crore and net profit of Rs 29.76 crore.