Day 21: Bidders elude 13 cities in FM Phase III; winning price up marginally

NEW DELHI: With no takers for as many as 13 cities and bidding slowing down on the 21st day in the e-auction for the first batch of FM Phase III cities, the cumulative provisional winning price showed a marginal rise to touch Rs 1134 crore at the end of the 84th round.


Bids continued to elude 13 cities for the 21st day today with no takers for channels in Asansol, Gulbarga, Mangalore, Mysore, Puducherry, Rajahmundry, Siliguri, Tiruchy, Tirunveli, Tirupati, Tuticorin, Vijaywada and Warangal.


The number of provisional winning channels and cities remained the same as Friday (21 August), i.e.: 94 channels in 56 cities, with the total bids surpassing the cumulative reserve price by Rs 675.22 crore or 147.1 per cent against the aggregate reserve price of about Rs 459 crore.


The cumulative provisional winning price has thus risen over the total reserve price of the first batch of 135 FM channels in 69 existing cities - Rs 550.18 crore – by Rs 583.90 crore or 106.1 per cent.


The Auction Activity Requirement rose to 100 per cent after the 59th round on 14 August, after being 90 per cent after the 37th round on 7 August.


So far, 17 cities have got provisional winning price for their channels more than 100 per cent above their respective reserve prices: Ahmedabad, Amritsar, Aurangabad, Bengaluru, Bhubaneshwar, Chennai, Delhi, Guwahati, Jaipur, Jodhpur, Kolhapur, Mumbai, Nasik, Patna, Pune, Rourkela and Varanasi, which got provisional winning bidders at prices more than double the respective reserve prices.


With the provisional winning price more than nine times the reserve price, a single channel in Bhubaneshwar has undergone the most competitive bidding increment-wise.


The demand in most cities fell by up to three per cent and by four per cent below the excess demand at the price in the 80th round in Hyderabad.


Price Increment Algorithm for the e-Auction is based on the increment logic used by Department of Telecommunications in its auctions. As per this logic, there should be no increment for negative excess demand, some increment for zero excess demand and a fixed increment above a certain excess demand. Some increment for zero excess demand means that when demand is equal to supply, seller has right to increase price to see whether purchasers are there at increased price.


The Percentage Price Increment applicable for the Next Clock Round rose to five each in Guwahati, Jodhpur and Varanasi but was just one in Allahabad. There was no change in the other cities.


The provisional winning price in the top three cities reflected no change: Delhi at Rs 1.69.16 crore (for just one channel); Mumbai at Rs 122.81 crore (for two channels); and Bengaluru at Rs 109.25 crore.


Kohlapur, which appeared to be the next to enter the Rs 10 crore club, remained static for the second day with Rs 9.44 crore though cities like Kanpur, Rajkot, Amritsar and Aurangabad do not seem to be far behind. 


Chennai at Rs 53.38 crore, Ahmedabad at Rs 42.68 crore, Pune at Rs 42.03 crore, Jaipur at Rs 28.34 crore, Chandigarh at Rs 19.04 crore, Hyderabad at Rs 18 crore, Patna at Rs 17.89 crore, Cochin at Rs 15.04 crore and Lucknow at Rs 14 crore remained static.

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