Music Broadcast Ltd IPO Details – Date, Size, Price, Allotment status, Listing, Form
Music Broadcast Ltd (MBL) is the first private FM radio broadcaster in India. They operate radio stations under the brand “Radio City”. MBL have grown their presence from four cities in 2001 to 37 cities as on February 15, 2017. These radio stations include the eight “Radio Mantra Stations” transferred from SPML pursuant to the Scheme of Arrangement and nine out of eleven New Radio City Stations.They networked their stations located at Sangli, Nanded, Jalgaon, Sholapur and Akola in Maharashtra and operate it from a single hub at Ahmednagar. Similarly, they net worked their radio station in Kota from their Udaipur radio station, Ajmer radio station from their Jaipur radio station, Jamshedpur radio station from Ranchi radio station and Patiala radio station from Jalandhar radio station.
Music Broadcast Ltd IPO Issue Details
|Objects of the issue||1) Redemption of Listed NCDs;
2) Early redemption of the JPL NCDs and repayment / pre-payment of JPL ICDs;and
3) General corporate purposes.
|Issue Size||Rs. 488.52 Cr|
|Face value||Rs. 10 Per Equity Share|
|Issue Price||Rs. 324- 333 Per Share|
|Bid Lot||45 Shares|
|Listing at||NSE, BSE|
|Issue Opens:||Mar 06, 2017 – Mar 08, 2017|
|QIB||50% of Net Issue Offer|
|NIB||15% of Net Issue Offer|
35% of Net Issue Offer
Music Broadcast Ltd Strengths:
- Strong leadership position and pan-India presence in the radio industry which is poised for growth.
- Popular content coupled with strong sales capability.
- Effective and efficient internal operational systems and human resource management.
Music Broadcast Ltd Key Highlights:
- The company has generated total revenue of Rs 245.50 crore for year March 2016 vs Rs 207.50 crore in year March 2015.Revenue for the six months ended September 2016 was Rs 138.21 crore.
- MBL has recorded profit of Rs 42.50 crore in FY16 vs Rs 47.05 Cr in FY15. The profit for six months ended September 2016 was Rs 29.75 crore.
Music Broadcast Ltd Risk Factors:
- Advertisement is the company’smain source of income and they are heavily dependent on continuous flow ofadvertisements at effective rates.
- They rely on third parties to source sound recordings that are broadcasted on their radio stations.
- MBL operate in a highly competitive industry. In the markets where they operate, and especially in the three major metro cities of Delhi, Mumbai and Bengaluru. It may impact the performance of the company negatively.
Radio City is the first private FM radio broadcaster in India. MBL operate 40 web radio stations through planetradiocity.com in eight languages. MBL have presence in 37 cities, and they expect to add two new cities by March/April 2017. That gives them optimum combination of key national, regional and local markets.
For the six month period ended on September 30, 2016, MBL has generated a total revenue of Rs 138.21 Cr, EBITDA of Rs 45.50 Cr and net profit/ (loss) after tax as restated for the period of Rs 29.56 Cr. For the fiscal year ended March 31, 2016, MBL has generated a total revenue of Rs 245.50 Cr, EBITDA of Rs 78.58 Cr and net profit/ (loss) after tax as restated for the year of Rs 42.50 cr. Their total revenue, EBITDA, net profit/(loss) after tax as restated for the year, grew at a CAGR of 20.45%, 32.40% and 54.09%, respectively between Fiscal 2013 and Fiscal 2016.
On the performance front, MBL has reported EPS of Rs 8.91(Post Equity)in FY16. At the asking price the PE works out to be 37 times. MBL have a proven track record of operations with stable cash flows. They have had positive cash flows from operations in each of the last five Fiscals. We expect company to retain the performance in years to come.
Hence, we recommend to subscribe the issue for medium to long term of investment purpose.
DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014
Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more
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