Sharemasterindia.com: Next Mediaworks shares surged as much as 10 per cent to a high of Rs
13.88 on the Bombay Stock Exchange on Tuesday. Including today's gain
the stock has surged 60 per cent in last one week.
Next Mediaworks, the holding company of Next Radio that operates FM channels under the brand name of "Radio One", is planning to raise Rs 115 crore through debt and equity for phase 3 of FM auction.
Rs 25 crore will be raised from ace investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala through allotment of preferential shares and remaining Rs 80-90 crore will be raised through debt, Next Mediaworks had said in a filing to exchanges.
Vineet Singh Hukmani, managing director at Radio One told NDTV, "Rakesh Jhunjhunwala has been a friend of the promoters for a very long period of time. He was invested in Midday earlier before it became Next Media."
Rare Enterprise, which is owned by Mr Jhunjhunwala, will be giving collateral of Rs 100 crore for the Rs 80-Rs 90 crore debt, which Next Mediaworks is planning to raise, said Mr Hukmani.
Radio One is one of the four profitable FM radio companies in the country, said Mr Hukmani. It had reported a revenue of Rs 65 crore in FY15. Its EBITDA (earnings before interest, taxes, depreciation, and amortization) was Rs 22 crore, representing an EBITDA margin of around 34 per cent, which is the highest in the industry, said Mr Hukmani.
'Radio One' is currently present in 7 cities across India, now it is planning to expand to 10 cities.
As of 1.16 p.m. shares in Next Mediaworks traded 10 per cent higher at Rs 13.88 apiece, compared to 0.30 per cent gain in the broader Sensex.
Next Mediaworks, the holding company of Next Radio that operates FM channels under the brand name of "Radio One", is planning to raise Rs 115 crore through debt and equity for phase 3 of FM auction.
Rs 25 crore will be raised from ace investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala through allotment of preferential shares and remaining Rs 80-90 crore will be raised through debt, Next Mediaworks had said in a filing to exchanges.
Vineet Singh Hukmani, managing director at Radio One told NDTV, "Rakesh Jhunjhunwala has been a friend of the promoters for a very long period of time. He was invested in Midday earlier before it became Next Media."
Rare Enterprise, which is owned by Mr Jhunjhunwala, will be giving collateral of Rs 100 crore for the Rs 80-Rs 90 crore debt, which Next Mediaworks is planning to raise, said Mr Hukmani.
Radio One is one of the four profitable FM radio companies in the country, said Mr Hukmani. It had reported a revenue of Rs 65 crore in FY15. Its EBITDA (earnings before interest, taxes, depreciation, and amortization) was Rs 22 crore, representing an EBITDA margin of around 34 per cent, which is the highest in the industry, said Mr Hukmani.
'Radio One' is currently present in 7 cities across India, now it is planning to expand to 10 cities.
As of 1.16 p.m. shares in Next Mediaworks traded 10 per cent higher at Rs 13.88 apiece, compared to 0.30 per cent gain in the broader Sensex.
