The initial public offering (IPO) of Music Broadcast Ltd, a Jagran group firm that runs Radio City FM channel, was oversubscribed by afternoon the second day of the offer on Tuesday.
The IPO received bids for over 2 crore shares as against the total issue size of 1.04 crore shares, an oversubscription of 2.09 times, data available with the NSE till 4:40 pm showed.
The portion reserved for retail investers was subscribed 3.47 times. Qualified institutional buyers segment, which did not see any subscription on day one, was subscribed 1.06 times. High networth individual participation was low as the portion was subscribed 0.24 times.
Music Broadcast Ltd last week raised over Rs 146 crore by allotting shares to anchor investors. The IPO comprises fresh issue of shares up to Rs 400 crore and an offer for sale of up to 26.59 lakh scrips. It has fixed a price band of Rs 324-333.
Also Read: Radio City's Parent Company Music Broadcast Set For Primary Market Debut
The initial share sale plan will close on Wednesday.
Proceeds from the sale will 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.
ICICI Securities Ltd is the sole book running lead manager for the offer. The shares of the company are proposed to be listed on BSE and the National Stock Exchange (NSE).
For the 6-month period ended September 30, 2016, Music Broadcast generated a total revenue of Rs 138.21 crore and net profit of Rs 29.76 crore.
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