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Music Broadcast redeems last outstanding NCDs of Rs 50 cr

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Capital Market
Last Updated : Mar 06 2020 | 1:04 PM IST

Music Broadcast (MBL) on Thursday (5 March) said it redeemed last outstanding non-convertible debentures (NCDs) of Rs 50 crore to become almost debt free.

MBL, India's 1st private FM radio broadcaster, has redeemed (repaid principal) and paid interest in respect of 500 NCD's of Series C of Rs 50 crore to all eligible NCD holders as on record date, as per the terms mentioned in the information memorandum on 4 March 2020. With this the company has utilised its pending IPO proceeds for the redemption of listed NCD's and post making this payment, all the IPO proceeds have been utilised for the purpose for which it was raised and there has been no instance of deviation or variation in utilizing the IPO proceeds. The disclosure was made after trading hours yesterday, 5 March 2020.

Commenting on this Apurva Purohit, director said: "With the redemption of last outstanding NCDs, the company has fulfilled all the object of Issue without any deviation as stated during the IPO. The redemption will help us to become almost debt free with only approximately Rs 16.5 crore outstanding as on date on gross basis and reduce interest outgo by Rs 4.85 crore per annum."

On a standalone basis, Music Broadcast's net profit fell 37.9% to Rs 10.18 crore on a 20% decline in net sales to Rs 69.64 crore in Q3 December 2019 over Q3 December 2018.

Music Broadcast owns and operates Radio City 91.1 FM, which is a frequency modulation (FM) radio brand, and PlanetRadioCity.com, which is a music portal. The company has operations in around 20 cities in India.

Shares of Music Broadcast dropped 4.07% to Rs 25.95. The scrip hovered in the range of Rs 24.75 to Rs 27.05 so far.

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First Published: Mar 06 2020 | 12:35 PM IST

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