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IDBI
buys 10 per cent stake in BAG Film's radio unit
11
January 2007
 Mumbai:
IDBI Ltd has acquired a 10 per cent stake in BAG Films'
subsidiary, BAG Infotainment Pvt Ltd, which has licences
for operating ten FM radio stations in seven states.
BAG
Films said it has offloaded 20 per cent in its radio company
to two banks for Rs4 crore. The shares were issued on
par value.
While IDBI picked up 10-per cent equity Bank of Baroda
has also picked up 10 per cent shares at par in BAG Infotainment,
the company said.
BAG
Infotainment has licences for 10 FM stations across the
states of Himachal Pradesh, Punjab, Haryana, Madhya Pradesh,
Maharashtra, Bihar and Jahrkahnd.
Recently
the company reported a 4.72-per cent dent in its profits
at Rs78.7 lakh for the quarter ended September 30, 2006
from Rs82.6 lakh for the same quarter in the previous
year.
Sales for the quarter declined 3.62 per cent to Rs11.82
crore compared with the corresponding quarter, a year
ago.
Infotainment will be diluting an additional 20 per cent
to a foreign private equity investor at a higher valuation.
The promoters will keep the remaining 60-per cent stake
in the company.
It
is mandatory for the promoter of private FM radio stations
to have at least 51 per cent holding in the company.
BAG
has earmarked an investment of Rs48 crore for its radio
business. The company has already pumped in Rs14 crore,
including Rs5 crore towards licence fee for the 10 radio
stations it  plans
to operate.
Shares
of company were trading at Rs12.30, up 3.36 per cent on
the BSE. Total volume of shares traded was 396,459 in
the morning session.
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