DB Corp bangs on Radio business: Acquires 14 frequencies in Phase III auction

DB Corp (DBCL) strengthened its Radio business by acquiring 14 frequencies in Phase III auctions. The company's MY FM extends presence across 7 states and 30 cities. The share price of the company increased by 4.96 per cent in early trades on BSE and is trading at Rs 313.4 on intraday basis.

Out of the total 14, 9 frequencies have been acquired in Maharashtra, where MY FM is poised to become the biggest FM player excluding Mumbai and Pune. DBCL created a strong complementary local advertising medium to Divya Marathi. The company's additional frequencies in Rajasthan, Bihar and Chandigarh, Punjab, Haryana (CPH) regions, Dainik Bhaskar has enhanced its existing footprint. It continues to be the biggest player in Rajasthan and with the acquisition of Bikaner is now able to cover 100 per cent of Rajasthan state. DBCL also emerged biggest player in CPH region with inclusion of Hissar and Karnal. The company has also built a strong presence in Gujarat with Rajkot.

According to the company's management, MY FM has consolidated its presence in line with market leaders in 'Nonmetro' geographies where DBCL has a significant print media footprint. The circuits which the company has acquired are better reach and proposition for national advertisers as well as supplement its overall top line.

DBCL's FDI/FII investment limit is also expected to increase to 26 per cent from 20 per cent after the transition to Phase III. The company's shareholding pattern indicates that FII holdings stood flat at 18.49 per cent and DII holdings expanded by 3 basis points to 7.81 per cent during September 2015 quarter.

DBCL is engaged in developing, editing, publishing, printing, distributing and marketing newspapers, periodicals and other publications in languages other than English and other foreign languages; wind farm business; frequency modulation (FM) radio business, and other business. The Company’s radio business operates under the brand name My FM radio station in 7 states and 17 cities. It publishes periodicals in Hindi, Gujarati and English languages. DBCL’s flagship newspapers include Dainik Bhaskar, (in Hindi), Divya Bhaskar and Saurashtra Samachar, (In Gujarati) and Divya Marathi (In Marathi). The Company publishes English Newspaper DNA on a Franchisee basis from Ahmedabad, Jaipur and Indore. It also publishes Compact Newspaper, DB Star from Bhopal, Indore, Gwalior, Raipur and Jodhpur.