Music Broadcast IPO (Radio City) DRHP IPO Review

Music Broadcast IPO (Radio City) will open next year. Below we have provided Music Broadcast Credit Rating, IPO Review and DRHP in PDF. Music Broadcast has already filed the DRHP with the SEBI, which is provided below. Music Broadcast Limited operates one of the leading FM by name ‘Radio City’. The IPO of Radio City comes after the latest news that the Sheela Foam IPO was over subscribed by 5 times. Radio City is the first private FM radio broadcaster in India.  Music Broadcast  have grown their presence from four cities in 2001 to 29 cities as on November 25, 2016. Radio City has won various accolades in the industry. The IPO of Music Broadcast Limited ( Radio City ) is one of its first in the Industry.

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Music Broadcast IPO DRHP

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Music Broadcast IPO Review

Issue Capital Rs.400 Crore
Issue Date Early 2017
Issue Type Book Build
MOQ 50 Shares

Overview of Radio City : Music Broadcast IPO

Radio City is the first private FM radio broadcaster in India. Radio City operate our radio stations under the brand “Radio City”. Radio City have grown our presence from four cities in 2001 to 29 cities as on November 25, 2016.

These radio stations include the eight “Radio Mantra Stations” transferred from SPML pursuant to the Scheme of Arrangement and a radio station at Kanpur which we launched recently. Radio City is present in 12 out of the top 15 cities in India by population (Source: Census 2011). As on March 31, 2016, our radio stations reached out to over 49.60 million listeners in 23 cities covered by AZ Research.

Radio City Phase II : Music Broadcast IPO

All Radio City Phase II Radio City Stations which were under Phase II Policy have been migrated to the Phase III Policy. These include Radio City stations which are present at Bengaluru, Lucknow, Mumbai, New Delhi, Chennai, Pune, Hyderabad, Ahmedabad, Surat, Nagpur, Jaipur, Vadodara, Coimbatore, Vizag, Ahmednagar, Sholapur, Sangli, Nanded, Jalgaon and Akola and the Radio Mantra Stations which have been transferred to Music Broadcast Ltd pursuant to the Scheme of Arrangement which are located at Agra, Bareilly, Gorakhpur, Varanasi, Jalandhar, Ranchi, Hissar, and Karnal (together the “Existing Radio Stations”).

Radio City Phase III : Music Broadcast IPO

Under the Phase III Policy, new cities were opened up for auction, pursuant to which Music Broadcast acquired 11 additional radio stations i.e. the New Radio City Stations. The New Radio Stations will be located at Patna, Madurai, Nasik, Kolhapur, Udaipur, Ajmer, Kota, Bikaner, Jamshedpur and Patiala and, includes Radio City radio station in Kanpur, which was recently launched.

Radio City in the process of operationalising the remaining New Radio City Stations. Under the Phase III Policy the license period for radio stations has been increased to 15 years and radio stations are now permitted to carry news bulletins of AIR and also network their radio stations in all cities.

Radio City have in the past networked their stations located at Sangli, Nanded, Jalgaon, Sholapur and Akola in Maharashtra and operate it from a single hub at Ahmednagar. Radio City is now propose to use this experience to network some of thier stations in other states as well.

Strong financials and cash flows : Music Broadcast IPO

Music Broadcast Company has witnessed a growth in total income, EBITDA, improvement in EBITDA margins and ROE over the past years.

Music Broadcast revenue from operations for the six months ended September 30, 2016, Fiscal 2016, Fiscal 2015 and Fiscal 2014 stood at Rs. 1,368.90 million, Rs. 2,323.31 million, Rs. 2,008.36 million and Rs. 1,541.67 million, respectively.

Music Broadcast EBITDA margins for six months period ended September 30, 2016, Fiscal 2016, 2015 and 2014 were 33.24%, 33.83%, 31.02% and 27.48%, respectively and Music Broadcast ROE for six month period ended September 30, 2016, Fiscal 2016, 2015 and 2014 were 21.23% (not annualised), 38.50%, 77.67% and 178.52%, respectively.

Conclusion : Music Broadcast IPO

Radio City is one of the fastest growing FM Networks in India accompanies by strong sales. Music Broadcast IPO is expected to get a big boost due to favourable industry conditions.