Here's all you need to know about Radio City operator's IPO

Music Broadcast, which owns FM radio stations Radio City and Radio Mantra, hit the Street with its Rs 488.5-crore public issue on Monday.The issue comprises a fresh issue of up to Rs 400 crore and an offer for sale up to 26.58 lakh equity shares by selling shareholders. The initial public offer will close on March 8.In total, the Radio City operator is going to raise Rs 486.13 to Rs 488.5 crore at price band of Rs 324 to Rs 333 per share.Here are a few things you should know about Music Broadcast before subscribing the issue:Company profileMusic Broadcast operates its radio stations under the brand 'Radio City'. It operates in 37 Indian cities with 39 radio stations. The company has a strong listenership base in cities like Mumbai, Delhi and Bengaluru. Moreover it also has presence in the internet Radio Space with PlanetRadioCity.com – 40 web radio stations in 8 languages.The company expects the remaining two new Radio City stations namely Bikaner and Patna to be operationalised by March/ April 2017.Issue detailsThe issue opens on March 6 and closes on March 8, 2017. The company is planning to raise Rs 486 crore and has set the price band between Rs 324 and Rs 333. Bids can be made for a minimum of 45 equity shares and in multiples of 45 shares thereafter. Equity shares are proposed to be listed on BSE and NSE. ICICI Securities is the sole book running lead manager to the offer.PromotersJagran Prakashan is the promoter of Music Broadcast Limited. The media group is one of the leading media and communications group in India and has interests in print, radio and digital, among others. It publishes eight newspapers and magazine in five different languages across 13 states in India. Issue objectsThe company plans to use the funds raised through the issue to redeem its listed non-convertible debentures (NCDs), coupled with early redemption of promoter firm’s NCDs. Apart from them, it will be used for general corporate purposes. Audience reachRadio City is ranked No. 1 in terms of number of listeners, total 4.96 crore listeners across top 23 cities, a report by AZ Research reveals. Entertainment Network India Ltd (ENIL), its rival in the space, has 4.05 crore listeners.FinancialsRevenue, operating profit and after tax profit have grown at CAGR of 19 percent, 32 percent and 53 percent respectively between FY13 and FY16. CLSA, in a report, states MBL is not only growing fast, but also has a higher margin (33%) than Jagran’s standalone business (28%). MBL contributes 10-12% to our consolidated revenue, Ebitda and profit estimates for Jagran Prakashan.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.Future PlansAxis Capital feels the company’s expansion strategy under the Phase III Policy was driven by identifying markets after taking into consideration their advertising potential, population density, per capita income and number of existing players. Post the migration of all their existing Radio Stations and acquisition of the New Radio City Stations under Phase III, their markets would cover 62% of India’s population having access to FM radio in 302 towns. The company has also moving towards developing programmes beyond their radio broadcast.Case File Music Broadcast had filed its IPO papers with the Securities and Exchange Board of India (Sebi) in November last year and received 'observation' from it on February 9, which is necessary for a company to launch its public offer.