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Radio City’s Parent Company Music Broadcast To List In March

Media Broadcast Ltd. to use large part of the IPO proceeds to pare debt.

Inside a radio broadcast studio. (Source: smorazanm/Pixabay)
Inside a radio broadcast studio. (Source: smorazanm/Pixabay)

Music Broadcast Ltd., a wholly-owned subsidiary of Jagran Prakashan Ltd., and the country’s oldest private radio broadcaster is all set to get listed, after the Securities and Exchange Board of India (SEBI) finally cleared its Draft Red Herring Prospectus (DRHP). The company which runs Radio City and Radio Mantra FM channels across the country plans to raise Rs 400 crore through this issue, with a price band of Rs 324-333 per share, which opens on March 6 and closes on March 8.

A total of 26,58,518 equity shares have been put on sale, which will see some existing investors selling their stake in the company, but Jagran Prakashan will hold on to its existing stake in the company.

Part of the proceeds will be used to reduce its Rs 300 crore debt to about half, said Apurva Purohit, Director of Music Broadcast Ltd., in an interview to BloombergQuint.

The private radio broadcaster already has a presence across 37 cities in the country, and will start operations in another two soon. It recently expanded its operations in Kanpur, Patna, Madurai and Nashik after successfully winning spectrum across 11 frequencies in Phase III of the radio auctions.