Reliance Media to list on bourses on Friday

Reliance Media to list on bourses on Friday
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First Published: Thu, Dec 03 2009. 01 05 PM IST
Updated: Thu, Dec 03 2009. 01 05 PM IST
Mumbai: Reliance Media World, part of the Anil Dhirubhai Ambani Group, will list on the stock exchanges on Friday, a top official said on Thursday.
The company, which runs a radio business and outdoor advertising activities, was de-merged from Reliance Media Works, which was formerly called Adlabs and operates cinema theatres.
Shareholders of Reliance Media World were issued one share for each held in Reliance Media Works.
“The main purpose (of the listing) is of course to unlock shareholder value,” said Tarun Katial, chief executive of Reliance Media.
The company expects to break-even at the operating level by March 2010 and hopes to turn to profit a year later, he said.
The company, which has its radio network in 45 cities now has a market share of above 22% in the FM (frequency modulation) radio segment, which is worth about Rs1000 crore ($216 million), Katial said.
About 85-90% of its revenues come from FM radio and outdoor advertising.
Other players in the radio segment include state-owned All India Radio, Entertainment Network (India) Ltd, which operates Radio Mirchi, and Radio One operated by Mid-day Multimedia.
Radio operators are expecting additional allocation of frequencies and opening up of current affairs and news content to private radio operators.
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First Published: Thu, Dec 03 2009. 01 05 PM IST