JOIN USMusic Broadcast (MBL), which owns Radio City, is looking to spread wings further in Karnataka and other states through acquisitions.
“We would like to fill gaps in our portfolio by entering areas where we are not present. We are present only in Karnataka (in Bengaluru) and not in many other states including Madhya Pradesh and Chhattisgarh. If it makes sense and if the asset is affordable and at the right price, the company will certainly look at acquisitions,” Music Broadcast director Apurva Purohit told DH.
“Of the funds that we raise from the initial public offering, we will be keeping aside around Rs 250 crore for potential acquisition opportunities,” Purohit added.
Music Broadcast is promoted by the Jagran Prakashan Group, which acquired a majority shareholding in MBL in 2015. The company has filed a draft red herring prospectus for an IPO comprising a fresh issue of up to Rs 400 crore and an offer for sale of up to 26.58 lakh shares by the selling shareholders.
MBL operates radio channels under the name ‘Radio City’, ‘Radio Mantra’, and also operates its own online web radio portal www.planetradiocity.com.
Radio City has consistently been the number one radio station in terms of average listenership share (in percentage) in Bengaluru and Mumbai with 24.1% and 17.2%, respectively.
According to Purohit, the company is also looking at diversification of business and transformation to an audio entertainment company. “MBL has launched a mobile app to access our web radio content on the go and we intend to increase our investment in these digital eco-systems,” Purohit said.