IDBI buys 10 per cent stake in BAG Film's radio unit
11 Jan 2007
BAG Films said it has offloaded 20 per cent in its radio company to two banks for Rs4 crore. The shares were issued on par value.
While IDBI picked up 10-per cent equity Bank of Baroda has also picked up 10 per cent shares at par in BAG Infotainment, the company said.
BAG Infotainment has licences for 10 FM stations across the states of Himachal Pradesh, Punjab, Haryana, Madhya Pradesh, Maharashtra, Bihar and Jahrkahnd.
Recently the company reported a 4.72-per cent dent in its profits at Rs78.7 lakh for the quarter ended September 30, 2006 from Rs82.6 lakh for the same quarter in the previous year.
Sales for the quarter declined 3.62 per cent to Rs11.82 crore compared with the corresponding quarter, a year ago.
Infotainment will be diluting an additional 20 per cent to a foreign private equity investor at a higher valuation. The promoters will keep the remaining 60-per cent stake in the company.
It is mandatory for the promoter of private FM radio stations to have at least 51 per cent holding in the company.
BAG has earmarked an investment of Rs48 crore for its radio business. The company has already pumped in Rs14 crore, including Rs5 crore towards licence fee for the 10 radio stations it plans to operate.
Shares of company were trading at Rs12.30, up 3.36 per cent on the BSE. Total volume of shares traded was 396,459 in the morning session.
