MUMBAI: Anil Dhirubhai Ambani Enterprises (ADAE) has finally created
a radio division for its FM radio foray and has sought government
clearance for the same.
The radio division of Adlabs Films, which bagged FM radio licences
in several cities of India and is one of the bigger players in the
arena, will be called Adlabs Radio Pvt Ltd.
However, a brand name under which Adlabs Radio will run the FM
radio services has not been decided yet.
Adlabs Radio Pvt Ltd is a
special purpose vehicle (SPV) created by ADAE for its radio business, while the
corporate entity and the official licencee continues to be Adlabs Films Ltd.
According to sources in the information and broadcasting ministry,
the proposal is "under routine examination".
The SPV has been created for a focussed approach on the radio business as
Adlabs Films concentrates more on the business of running multiplexes and post-production
Under the licencing agreement, licences are not transferable
after being formally awarded to a company.
In the recently-concluded
bidding process for FM licences, the government has allowed foreign investment
up to 20 per cent in radio ventures, but such deals had to be concluded before
the bids were opened in the first week of February.
Moreover, no change
in shareholding pattern is allowed, under the guidelines, for the first five years
of the 10-year licence period.
The Anil Ambani controlled Adlabs Films has won 57 frequencies across
the country, but had to surrender 12 stations to adhere to another
norm, which mandates no single company can own more than 15 per cent
of the total number of frequencies put up for sale throughout the
Adlabs Films' scrip opened on Wednesday at Rs 403 on the Bombay Stock
Exchange (BSE) and touched a high of Rs 409 and a low of Rs 395 during
the trading day.