Scrip Watch

Music Broadcast Ltd

Scrip Sanctuaries for protection from the wildlife in this jungle of Indian Equities

Music Broadcast Ltd

Music Broadcast Ltd

 

Issue Open: Mar 6, 2017 – Mar 8, 2017
Issue Type: Book Built Issue IPO
Issue Size:
Fresh Issue of Equity Shares of Rs 10 aggregating up to Rs 400.00 Crs
Offer for Sale of 2658518 Equity Shares of Rs 10
Face Value: Rs 10 Per Equity Share
Issue Price: Rs. 324 – Rs. 333 Per Equity Share
Market Lot: 45 Shares
Minimum Order Quantity: 45 Shares
Listing At: BSE, NSE

BRRLM – ICICI Securities Ltd

 

Standalone Financials and Valuations for FY16 (Amt in Rs Crs unless specified)


Equity Capital

Net worth
Long Term Debt
Total
Sales
PAT
BV
(Rs)

EPS (Rs)

P/E

P/BV

Promoter’s
Stake
38.91 104 253 246 42.5 27 10.9 30.6 12.3 95
  • Post issue Promoters Holding will come down to ~70%

Standalone Financials and Valuations for H1 FY17


Equity Capital

Net worth

Total
Sales
AnnualisedPAT
BV
(Rs)

TTM EPS (Rs)

TTM P/E

P/BV

Promoter’s
Stake
57.05 117 138 60 21 10.5 31.7 15.9 95

 

Music Broadcast Limited operates as a subsidiary of Jagran Prakashan Limited.

Objects of the Issue:

  • Redemption of Listed NCDs; 
  • Early redemption of the JPL NCDs and repayment / pre-payment of JPL ICDs;and
    General corporate purposes.

Category-wise Break up:
Anchor – 4401159 Shares = 146.56Crs.
Net QIB – 2934106 Shares = 97.71Crs
NII – 2200580 Shares = 73.28Crs
RII – 5134685 Shares = 170.99Crs. (Lot size = 45)
Total Issue – 14670530 Equity Shares = 488.53Crs.

Overview:

  • Music Broadcast Ltd (MBL) is operating radio stations under the branch “Radio City” and has grown its presence from 4 cities in 2001 to 37 cities as on 15th February 2017. These radio stations include the eight “Radio Mantra Stations” transferred from SPML pursuant to the Scheme of Arrangement and nine out of eleven New Radio City Stations. The company expects the remaining two New Radio City Stations to be operationalised by March/ April 2017.
  • MBL is present in 12 out of the top 15 cities in India by population having a reach to over 49.60 million listeners in 23 cities.
  • All its Phase II Radio City Stations which were under Phase II Policy have been migrated to the Phase III Policy.
  • These include Radio City stations which are present at Bengaluru, Lucknow, Mumbai, New Delhi, Chennai, Pune, Hyderabad, Ahmedabad, Surat, Nagpur, Jaipur, Vadodara, Coimbatore, Vizag, Ahmednagar, Sholapur, Sangli, Nanded, Jalgaon and Akola and the Radio Mantra Stations which have been transferred to it pursuant to the Scheme of Arrangement which are located at Agra, Bareilly, Gorakhpur, Varanasi, Jalandhar, Ranchi, Hissar, and Karnal. Under the Phase III Policy, new cities were opened up for auction, pursuant to which MBL acquired 11 additional radio stations i.e. the New Radio City Stations.
  • The New Radio City Stations which have been operationalised are located at Kanpur, Ajmer, Kota, Udaipur, Patiala, Jamshedpur, Nasik, Kolhapur and Madurai. The remaining two New Radio City Stations namely Bikaner and Patna are expected to be operationalised by March/ April 2017.
  • Under the Phase III Policy the license period for radio stations has been increased to 15 years and radio stations are now permitted to carry news bulletins of AIR and also network their radio stations in all cities. 

The Promoter of the Company is JPL (Jagran Prakasha Ltd)

(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 2107 Crs and a profit after tax of 445 Crs on a consolidated basis. )

Major Shareholders:

 

Shareholder No. of shares held % of shares held
Spectrum* 29906520 71.35
Crystal* 9003181 21.48
JPL 1358816 3.24
Apurva Purohit 1228500 2.93
  • The shareholding of Spectrum and Crystal were subsequently transferred to JPL pursuant to the Scheme of Arrangement.

 

From 1999 till 2005 it issued equity at par and in 2006 it issued few shares at a price of Rs. 32703.47 per share. In 2007 it issued further equity at a price of Rs. 70 per share and thereafter it again issued more shares at par in 2007 and 2015. In 2006 it also issued bonus shares in the ratio of 705.13 shares for every 1 share held.

 

Standalone Financial Trends (In Rs.Crs) :

Particulars FY16 FY15 FY14 FY13 FY12
Equity Paid Up 38.91 38.91 38.91 38.91 38.91
Networth 104 58 11 -14 -27
Total Debt 256 285 103 118 139
Net Sales 246 208 157 141 125
Other Income 13 7 3 2 3
PAT 42.5 47.1 24.3 11.6 -2.2
Book Value (Rs) 27 15 3 -4 -7
EPS (Rs) 10.9 12.1 6.2 3.0 -0.6

 

The Radio Revenue is 55%.

Debt is long term in nature (except 3 Crs short term included on FY2016)

Peer Comp: (Standalone FY16)

Particulars ENIL MBL
Mkt.Cap (Rs.Crs) 3942 1860
CMP (Rs) 827 333
FV (Rs) 10 10
Sales (Rs.Crs) 534 246
PAT (Rs.Crs) 100 43
Equity (Rs.Crs) 47.67 38.91
Networth (Rs.Crs) 769 104
Debt (Rs.Crs) 250 253
EPS (Rs) 21.0 10.9
BV (Rs) 161 27
P/BV 5.13 12.3
P/E 39.4 30.6

 

The market share of MBL is 21% whereas ENIL is 20%

The value share of MBL is 23% and ENIL is 24%

 

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