Music Broadcast sings great tune!

What a fantastic debut by the new entrant – Music Broadcast! The stock got listed on the BSE at Rs.420 v/s its issue price at the upper band at Rs.333.

It went down to an intra day low of Rs.370 and now currently trades at Rs.380 levels, remaining firm over IPO price.

Music Broadcast, 89.40% subsidiary of Jagran Prakashan group, owns and runs 39 private FM radio stations under the ‘Radio City’ and ‘Radio Mantra’ brands in 6 languages, reaching out to 50 million listeners across 37 Indian cities. Company’s sole income stream is advertisement revenue (as radio stations free-to-air), close to 50% of which is from 3 cities alone - Mumbai, Bangalore and Delhi. The IPO had received a very good response and it was subscribed 39 times.

In our IPO Analysis we had said, “Based on pure play listed peer comparison, pricing is fair. Expected double digit growth, Jagran group pedigree, growth trajectory of radio industry and current market fancy for new ideas due to dearth of opportunities in the secondary space, market being just 4% off all-time highs, share looks promising and one may apply in the issue.”