ENIL plays a hit number!

Entertainment Network (India) Limited (ENIL) or more popularly recognized as the ‘Radio Mirchi' company is singing a very good tune today’ looks like it’s a hit number today! The stock today opened at Rs.684 from previous close of Rs.656 and went up to an intra day high of Rs.720. Currently up almost 5% at Rs.687 levels, its 52-week high stands at Rs.839. Volumes are up around two times.

The stock is up, reacting to the company’s announcement that it has won new licences in the electronic auctions for private FM radio. It has participated forcefully in the 1st batch of Phase-3 auctions and has expanded its strength substantially.

The company’s core Mirchi brand (the "first" frequency) has expanded its footprint into 7 new towns - Chandigarh, Kochi, Kozhikode, Jammu, Srinagar, Guwahati and Shillong. In addition, it has received the permission from the Ministry of Information & Broadcasting ['MIB'] to acquire 4 stations from TV Today Network Limited - Amritsar, Patiala, Shimla and Jodhpur - which will be re-branded as Mirchi shortly, adding to its North strength. With these 11 stations, the core Mirchi brand will now be available in 43 cities (currently 32).

In the bidding, the Company focused on building a strong "2nd frequency" network in the biggest A+ and A category towns. ENIL has won a 2nd frequency in Bangalore, Hyderabad, Ahmedabad, Pune, Kanpur, Lucknow, Jaipur, Nagpur and Surat. In addition, we hope we will get MIB approval for TV Today's three metros in Delhi, Mumbai and Kolkata.

ENIL has also acquired a 3rd frequency in Hyderabad. This makes ENIL the only company to have three frequencies in any city. With this, Mirchi will cement its position of being the leader in the radio space. With revenues of Rs 438 crore in FY15, and PAT of Rs 105 crores, it is the current market leader.