Radio operator Music Broadcast's shares surged 26 per cent today to an intraday high of Rs 420 on listing, compared with an issue price of Rs 333. The company which is one of the oldest private FM broadcasters in the country operates 37 FM radio stations under the brand 'Radio City' and 'Radio Mantra'. The Rs 488-crore initial public offering (IPO) of Music Broadcast garnered 39 times subscription. The institutional investor segment of the IPO was subscribed 40.4 times; high net worth individual (HNI) portion was subscribed 111.6 times; and retail segment was subscribed 9.4 times.
Music Broadcast had plans to raise Rs 400 crore in the IPO, which will be used to mainly repay its debt. The issue also comprised of secondary share sale worth around Rs 89 crore by certain promoter group individuals.
The company is a subsidiary of Jagran Prakashan, which will hold around 70.6 per cent in the company post IPO.
As of 10:09 am, shares of Music Broadcast traded 14 per cent higher at Rs 379.30.