Central Depository Services Ltd (CDSL) and Music Broadcast Ltd, the FM radio unit of media house Jagran Prakashan Ltd, have received clearance from the Securities and Exchange Board of India for an initial public offering.
CDSL, which considers BSE Ltd as its parent entity, received final observations from the capital markets regulator on 8 February. It had filed its draft red herring prospectus with SEBI on 28 December.
Music Broadcast, which operates Radio City, received SEBI’s final observations on 9 February. Blackstone-backed Jagran Prakasan had filed draft documents for an IPO of its radio unit on 1 December.
CDSL facilitates deposits of securities by opening an account. Securities such as shares, debentures and bonds of investors are held in electronic form (dematerialized form) at the depositories.
Its public issue comprises an offer for sale by shareholders including BSE, State Bank of India, Bank of Baroda and Calcutta Stock Exchange. The shareholders will sell a total of 33.65% stake in CDSL, as per the draft prospectus.
The IPO is estimated to be worth Rs 450 crore ($67 million). This would value CDSL around Rs 1,500 crore.
Axis Capital Ltd, Edelweiss Financial Services Ltd, Nomura Financial Advisory and Securities India Pvt Ltd and SBI Capital Markets Ltd are lead financial advisers to CDSL’s IPO. The company has also hired Haitong Securities India Pvt Ltd, IDBI Capital Markets & Securities Ltd, and Yes Securities (India) Ltd as merchant bankers to the proposed IPO.
Meanwhile, Music Broadcast will be the second radio operator to list on the bourses after Times Group-controlled Entertainment Network India Ltd, which runs the country's top FM radio business under Radio Mirchi label.
Its public issue comprises a fresh issue of shares worth Rs 400 crore ($59.7 million) and an offer for sale of about 2.66 million shares by some existing shareholders.
Jagran Prashan entered the radio segment with the acquisition of Music Broadcast in December 2014 from private equity firm India Value Fund Advisors and Star Group, which is part of Rupert Murdoch-controlled 21st Century Fox. Murdoch also runs News Corp, the parent of this news website.
ICICI Securities Ltd is the sole financial adviser for the issue.
Jagran Prakashan publishes Hindi daily Dainik Jagran apart from other properties, including Mid-Day, Naidunia, City Plus and Punjabi Jagran.
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