Radio City operator’s IPO opens today
New Delhi [India], Mar 6 (ANI): The Radio City operator on Monday hit the market with its initial public offering (IPO) with a price band between Rs. 324 and Rs. 333, which will be open for issue till March 8, 2017. As per a report by Moneycontrol, the analysts have largely given the issue price and prospects a thumbs up and recommend investors to subscribe. "Radio City is ranked number one in terms of number of listeners, total 4.96 crore listeners across top 23 cities (according to a survey conducted by AZ Research), whereas, its competitor, Entertainment Network India Ltd (ENIL) is at second place with 4.05 crore listeners," said Angel Broking in a report. However, Axis Capital believes that the company's advertiser base has increased from 4,118 advertisers in FY14 to 5,211 advertisers in FY16. Also, ICICI Direct feels that its sole dependence on fewer advertising agencies could affect the business. "The loss of one or more of these significant advertisers or advertising agencies or a reduction in ad-spend by the advertisers/reduction in effect advertising rates due to market forces, competition, excess inventory, inability to maintain market position or inability to attract new advertising customers could have an adverse effect on its business," it said. Furthermore, its strong reliance on third parties towards content sourcing is also a challenge, citing instances of its licensing agreements. "The licensing agreements are typically on a non-transferable and non-exclusive basis and have a period of 12-36 months. The business is exposed to the risk of non-renewal of license agreements, which would prohibit the company from broadcasting content owned by the said license," the report added.
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