Leading securities depository CDSL and media house Jagran group’s FM radio unit Music Broadcast Ltd have received capital markets regulator Sebi’s approval for initial public offerings. CDSL, promoted by BSE, and Music Broadcast, which operates the popular Radio City FM station, had filed draft red herring prospectus (DRHP) with Sebi in December and November last respectively. The securities depository firm and Music Broadcast got ‘observation’ from the Securities and Exchange Board of India (Sebi) on February 8 and 9 respectively, which is necessary for any company to launch public offer. Going by the draft papers, little over 3.5 crore shares would be offloaded by CDSL through the Offer for Sale (OFS) route and out of the total, 7 lakh shares would be reserved for the employees.
Four shareholders — BSE, SBI, Bank of Baroda and the Calcutta Stock Exchange — would be selling stakes in Central Depository Services (India) Ltd (CDSL) through the IPO.
Net offer would constitute 32.98 per cent of CDSL’s post offer paid up equity share capital. BSE, which holds 50.05 per cent stake in the entity, got listed on the stock exchange earlier this month.
CDSL’s revenue from operations include transaction, account maintenance charges and settlement charges paid by depository participants. Besides, there are annual fees, corporate action charges and e-voting charges paid by the companies concerned.
Axis Capital, Edelweiss Financial Services, Nomura Financial Advisory and Securities (India) and SBI Capital Markets are the global co-ordinators and book running lead managers for the offer.
Music Broadcast’s IPO comprises fresh issue of shares aggregating upto Rs 400 crore and offer for sale by existing shareholders, as per the draft prospectus.
ICICI Securities Ltd is the sole book running lead manager for the issue.
Music Broadcast is the unit of Jagran Prakashan, the publisher of Hindi daily Dainik Jagran.
The equity shares of both the companies are proposed to be listed on BSE and the National Stock Exchange (NSE). – Financial Express