Music Broadcast on Friday made a strong debut on the bourses with the stock listing on the BSE at R420, a 26% premium to the issue price of R333. The scrip ended the session at R373, 12% above its issue price. Post listing, the stock commands a market capitalisation of R2,129 crore.The initial public offering (IPO) of Music Broadcast was subscribed 39.34 times with investors bidding for 41.23 crore shares of the total 1.04 crore shares on offer.
The IPO, which aimed at raising R488.52 crore, comprised of R400 crore to be raised through a fresh issue and an offer for sale (OFS) of 26.58 lakh shares.The issue received bids for 11.84 crore shares from qualified institutional buyers, of their quota of 29.78 lakh shares. High net-worth individuals bid for 24.56 crore shares out of 22.50 lakh shares reserved for them, bidding 109.13 times.
Retail investors bid for nearly 9.18 times, or 4.82 crore shares, of the 52.51 lakh shares reserved.Music Broadcast on March 3 raised R146.55 crore from anchor investors ahead of its IPO. The company sold more than 44.01 lakh shares to 15 anchor investors at a rate of R333 per piece.
The investors who were allotted shares in the pre-IPO placement include HSBC Indian Equity, Nomura, Franklin India, Morgan Stanley, DSP Blackrock, HDFC, ICICI Prudential, Reliance Capital, UTI among others.For the six month period ended on September 30, 2016, Music Broadcast generated a total revenue of R138.2 crore, and a net profit of R29.75 crore. For the year ended March 31, 2016, the company posted a net profit of R42.5 crore against R47.05 crore in the previous year.
Music Broadcast runs radio stations under the brand “Radio City” and has 37 stations as on February 15, 2017. ICICI Securities was the book running lead manager to the issue.