Music Broadcast IPO Subscribed 51% On First Day

The initial public offering (IPO) of Music Broadcast Ltd, a Jagran Prakashan firm that runs Radio City FM channel, was subscribed 51 percent on the first day of the offer on Monday.

The IPO received bids of 53.17 lakh shares against the total issue size of 1.04 crore shares, data available with the National Stock Exchange till 5:00 pm showed.

The portion set aside for non-institutional investors was subscribed 3 percent, while retail investors category was fully subscribed. Qualified institutional buyers segment did not see any subscription on day one.

Music Broadcast Ltd last week raised over Rs 146 crore by allotting shares to anchor investors.

Read: Music Broadcast IPO Opens; Analysts Say Valuations Attractive

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 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.

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.

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