Music Broadcast, whose initial public offering (IPO) opened on Monday, was subscribed by 2.19 times on day two as investors bid for 2.29 crore shares of the total 1.04 crore shares on offer.
The company has priced its IPO, aimed at raising R488.52 crore, in a band of R324 to R333 per share. The issue received bids for 31.56 lakh shares from qualified institutional buyers against their quota of 29.78 lakh shares.
High-net-worth individuals bid for 5.47 lakh shares of the 22.50 lakh shares reserved for them, bidding 0.24 times. Retail investors bid for nearly 3.66 times, or 1.92 crore shares, of the 52.51 lakh shares reserved for them.
Music Broadcast last Friday 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 Limited 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.
The company will not receive any proceeds from the offer for sale. The net proceeds from the fresh issue will be used for the redemption of non-convertible debentures and general corporate purposes. Music Broadcast runs radio stations under the brand “Radio City” and has 37 stations as on February 15, 2017. ICICI Securities is the book running lead manager to the issue.