Grey Market Report:
on 17.03.2017 at 09.00am GMP is Rs. 90-92
No of Times the IPO is subscribed
As on…………………………………… ……QIB ………..NII …………RII ……… Total
Shares Offered ……………………..2978685 .. 2250630……….5251469.. 10480784
Day 1 – March 06, 2017 05.00.pm … 0.000 ….0.0309…………0.9979……..0.5070 T
Day 2 – March 07, 2017 05.00 pm ……1.0595……0.2414…………3.6619……..2.1870 T
Day 3 – March 08, 2017 04.00 pm …..39.78….. 109.14 …………..9.3100…….39.41….T
Issue Opens on: 06 March 2017
Issue Closes on: 08 March 2017
Issue Type: Book Built Issue IPO
Issue Size: 14,670,530 Equity Shares
Face Value: Rs 10 per Equity Share
Issue Price: Rs.324 – Rs.333 per Equity Share
Market Lot: 45 shares
Listing At: NSE, BSE
Category-wise Break up:
Anchor – 4,401,159 Shares = 146.56Crs.
Net QIB – 2,934,106 Shares = 97.71Crs
NII – 2,200,580 Shares = 73.28Crs
RII – 5,134,685 Shares (1,14,104 Forms) = 170.99Crs. (Lot size = 45)
Total Issue – 14,670,530 Equity Shares = 488.53Crs.
03rd March – Anchor Investors
06th March – Offer Opens
08th March – Offer Closes
13th March – Markets Closed for Holi
14th March – Finalisation of Basis of Allotment
15th March – Unblocking of ASBA
16th March – Credit to Demat Accounts
17th March – Listing on NSE & BSE
About the Company:
Radio City is the first private FM radio broadcaster in India. It operates its radio stations under the brand “Radio City”. It has grown presence from four cities in 2001 to 29 cities as on November 25, 2016. These radio stations include the eight “Radio Mantra Stations” transferred from SPML pursuant to the Scheme of Arrangement and a radio station at Kanpur which it launched recently. It is present in 12 out of the top 15 cities in India by population (Source: Census 2011). As on March 31, 2016, its radio stations reached out to over 49.60 million listeners in 23 cities covered by AZ Research .
Under the Phase III Policy, new cities were opened up for auction, pursuant to which this Company acquired 11 additional radio stations i.e. the New Radio City Stations. The New Radio Stations will be located at Patna, Madurai, Nasik, Kolhapur, Udaipur, Ajmer, Kota, Bikaner, Jamshedpur and Patiala and, includes its radio station in Kanpur, which was recently launched.
Its Radio Stations:
Its radio content typically comprises of RJ shows and film music. It has also created popular radio shows such as ‘Love Guru’ and ‘Kal Bhi Aaj Bhi’ and pre-programming features such as ‘Babber Sher’ and ‘Joke Studio’. ‘Radio City Super Singer’, a popular singer talent hunt on radio was launched by us in 2011 and continues till date. It has also launched ‘Gig City’ a unique initiative which broadcasts music concerts simultaneously across multiple radio stations. In its endeavour to recognise independent singers and musicians, it has initiated ‘Radio City Freedom Awards’ which has completed three years and facilitates independent music across genres and languages.
It runs its radio stations throughout the year. As on September 30, 2016, it had hired 82 RJs, including two online web radio RJs, to conduct the shows. The studios use IP based studio equipment and consoles which are free from noise pick-ups. It uses linear encoding in its studios to ensure superior quality of audio on-air.
Who are the Promoters:
Jagran Prakashan Ltd is one of the leading media and communications groups in India with interests spanning across print, radio, digital, out of home and brand activations. JPL publishes 10 print titles in five different languages across 13 States in India and has over 400 editions and sub-editions. These include titles such as ‘Dainik Jagran’ –India’s largest read daily and – ‘Inquilab’, one of India’s leading Urdu daily. As of March 31, 2016, JPL had consolidated operating revenues of ` 21,065.14 million and a profit after tax of ` 4,446.66 million on a consolidated basis. JPL’s operating revenue and profit for the year grew at a CAGR of 11.65% and 25.67% between Fiscal 2012 and Fiscal 2016.
For the six months period ended September 30, 2016, the company generated a total revenue of 1,382.13 million, EBITDA of ‘ 455.09 million and net profit/ (loss) after tax as restated for the period of ‘ 297.56 million.
For the fiscal year ended March 31, 2016, it generated a total revenue of ‘ 2,455.06 million, EBITDA of ‘ 785.87 million and net profit/ (loss) after tax as restated for the year of ‘ 425.07 million.
Its 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 FY13 and FY16
Positive Aspects :
It is the first and oldest private FM radio broadcaster in India with over 15 years of expertise in the radio industry. During the period of Fiscal 2014 and 2016, its revenue from operations grew at a CAGR of 22.76% Amongst the private radio stations, it 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.
the Company is also present in 12 out of the 15 most populated cities in India (Source: Census, 2011). As on March 31, 2016, Radio City reached out to over 49.60 million listeners in 23 cities covered by AZ Research (Source: AZ Research Report). Further, it has also been ranked one in Mumbai and Bengaluru and ranked two in Delhi in terms of ‘top of mind’ brand recall for the last twelve months period ending August 31, 2016
Also, its Existing Radio Stations have a license period of 15 years commencing from April 1, 2015 and its New Radio Stations have a license period of 15 years commencing from the date of their operationalisation.
Through Planet Radio City, it operates 31 web radio stations in six languages. Planet Radio City has a listenership of 12.20 million as on September 30, 2016 .Its current presence in 29 cities and its proposed expansion to 10 new cities gives us an optimum combination of key national, regional and local markets.
It also benefits from being a part of the Jagran group. The promoter JPL is one of the leading media and communications group in India with its interests spanning across print, radio, out of home, brand activations and digital. JPL publishes 10 print titles in five different languages across 13 States in India and has over 400 editions and sub-editions. It benefits from the relationship with the JPL group, experienced management team, knowledge of local markets and credibility amongst advertisers. It intends to leverage JPL’s legacy and leadership position in the media industry to promote its radio stations and to further deepen its reach to advertisers
About the Radio industry:
The radio industry is enjoying a steady CAGR (2011-2015) of 14.5 percent and grew by an estimated 15.1 percent in 2015 to reach revenue of Rs.19.8 billion. Growth has been driven by both volume enhancements in tier-II and tier-Ill cities and an overall increase in advertisement rates.
Radio industry saw healthy ad spend growth in 2015. Radio’s share in the overall media and entertainment industry pie is approximately 4 percent of the total advertisement market size.Radio has the potential to provide uniqueness and contextualisation in communication and content differentiation to standout. Marketers are acknowledging that radio is an integral part of marketing plans. The top three segments by advertising volume in the radio industry are Government and public service advertisement, real estate and e-commerce.
There is scope for a greater reach for FM radio as compared to television and print .With a forecasted CAGR of 16.9 percent till 2020, industry revenues are expected to double by 2020.
With this detailed analysis, the platform is open for discussion:
Grey Market Trend :
on 17.03.2017 at 09.00am GMP is Rs. 90-92
on 16.03.2017 at 10.0am GMP is Rs. 80-82
on 15.03.2017 at 10.0am GMP is Rs. 90-92
on 11.03.2017 at 11.0am GMP is Rs. 95
on 10.03.2017 at 9.0am GMP is Rs. 88-90 ( buyers)
on 08.03.2017 at 5.0pm GMP is Rs. 72-73 ( after IPO closure)
on 07.03.2017 at 10.30am GMP is Rs. 52-55 and Kostak Rs. 400
on 06.03.2017 at 05.30pm GMP is Rs. 52-55 and Kostak Rs. 400
on 06.03.2017 at 10.30am GMP is Rs. 51 and Kostak Rs. 350
on 02.03.2017 at 12.00am GMP is Rs. 66-68 and Kostak Rs. 550-600
on 02.03.2017 at 11.00am GMP is Rs. 56-58 and Kostak Rs. 450
on 01.03.2017 at 11.00am GMP is Rs. 64-66 and Kostak Rs. 450-500
on 28.02.2017 at 11.00am GMP is Rs. 73-76 and Kostak Rs. 450
on 27.02.2017 at 11.00am GMP is Rs. 65-70 and Kostak Rs. 450
on 25.02.2017 at 11.00am GMP is Rs. 93-96 and Kostak Rs. 550-650
on 24.02.2017 at 11.00am GMP is Rs. 80-85 and Kostak Rs. 500-600( Saudas from today)