Entertainment Network (India) IPO
Entertainment Network (India) IPO — date, price band, lot size & details 2006
Entertainment Network (India) listed on 15 Feb 2006 at ₹240, 48.1% above the ₹162 issue price.
Entertainment Network (India) is a Times group company that runs private FM radio stations under the Radio Mirchi brand in seven cities. Its total income was Rs 76.23 crore in FY2005.
Stock price
Entertainment Network (India) is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 12 November.
- Open 23 Jan 2006
- Close 27 Jan 2006
- Allotment TBA
- Refund/credit TBA
- Listing 15 Feb 2006
Issue summary
The terms of the offer, as filed.
| IPO Dates | 23 to 27 Jan, 2006 |
|---|---|
| Price Band | ₹144 – ₹162 |
| Face Value | ₹10 |
| Lot Size | 40 Shares |
| Issue Size | ₹213.84 Cr |
| Sale Type | Fresh capital only |
| Listing On | BSE, NSE |
| Registrar | KFin Technologies Limited |
| Min Investment | ₹ 6,480 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 40 shares at the ₹162 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 40 | ₹6,480 |
| Retail (max) | 30 | 1,200 | ₹1,94,400 |
| S-HNI (min) | 31 | 1,240 | ₹2,00,880 |
| S-HNI (max) | 154 | 6,160 | ₹9,97,920 |
| B-HNI (min) | 155 | 6,200 | ₹10,04,400 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 4
- 01Total income rose from Rs 20.99 crore in FY2003 to Rs 76.23 crore in FY2005.
- 02It turned profitable, with profit after tax of Rs 11.05 crore in six months to September 2005.
- 03Its radio licences moved to a lower fee regime of 4% of gross revenue.
- 04It had stations in all 4 metros.
Risks · 5
- 01It made losses of Rs 40.19 crore in FY2003, Rs 29.30 crore in FY2004 and Rs 17.90 crore in FY2005.
- 02Its 7 licence agreements had not been amended to the new policy, so fee terms were not final.
- 03Radio income depends on advertising; total income was Rs 49.46 crore in six months to September 2005.
- 04Net worth fell from Rs 80.89 crore in FY2003 to Rs 33.70 crore in FY2005 because of losses.
- 05Promoter holding fell from 98.7% before the issue to 71.3% after it, assuming the green shoe was exercised.
Three years of numbers
All figures in ₹ crore, as reported in the Entertainment Network (India) offer document.
| Metric | 30 Sep 2005 | 31 Mar 2005 | 31 Mar 2004 | 31 Mar 2003 |
|---|---|---|---|---|
| Assets | 81.00 | 63.39 | 68.03 | 87.30 |
| Total Income | 49.46 | 76.23 | 56.95 | 20.99 |
| Profit After Tax | 11.05 | -17.90 | -29.30 | -40.19 |
| NET Worth | 44.75 | 33.70 | 51.59 | 80.89 |
| Reserves and Surplus | 10.83 | - | - | - |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the Entertainment Network (India) RHP. EPS and P/E are post-issue — the table below carries the pre-issue comparison.
Entertainment Network (India) IPO Valuation
How the issue prices the company before and after the fresh shares are created.
| Valuation Metric | Pre-Issue | Post-Issue |
|---|---|---|
| EPS (₹) | ₹-5.21 | ₹4.65 |
| P/E Ratio (x) | -31.11 | 34.86 |
| Market Cap at Offer Price (₹ Cr) | ₹-343.59 | ₹384.97 |
Pre-issue figures use the shareholding reported in the RHP; post-issue figures use the shareholding once the fresh issue has created new shares. The two differ because of that dilution and because post-issue earnings per share are often annualised, so the change can run in either direction. Market capitalisation is calculated at the ₹162 offer price. Compare the post-issue P/E against listed peers before deciding — a premium there is growth you are paying for in advance.
Where the money goes
₹180.80 Cr of the issue is earmarked to named objects.
About the company
It runs private FM radio stations under the Radio Mirchi brand in seven Indian cities, and was the only private FM broadcaster in all four metros.
On 21 December 2005 it received the option to move its seven licences to the Phase II policy, under which it accounted licence fees at 4% of gross revenue. It also bought an event management business from TIML for Rs 5.76 million.
The IPO was Rs 213.84 crore and was entirely a fresh issue at Rs 162, the top of the Rs 144 to Rs 162 band, with a green shoe option.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Entertainment Network (India) IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
Axis Capital
260 issues handledBest listing: Latent View Analytics (+160.0%). Weakest: Shriram Properties (-23.7%).
JM Morgan Stanley Pvt. Ltd
22 issues handledBest listing: Infrastructure Development Finance Co (+76.5%). Weakest: House of Pearl Fashions (-9.1%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Entertainment Network (India)?
The current Grey Market Premium is ₹0.
What is the Entertainment Network (India) IPO price band?
₹144 to ₹162, on a face value of ₹10.
When is the allotment?
The basis of allotment is TBA, with listing on 15 February 2006.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — KFin Technologies Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
