Government gets Rs 450 crore from FM radio bids

Among the existing players, Entertainment Network India, the Times Group company, emerged as the biggest player adding seven new frequencies to its original tally of seven radio stations.

The bidding brought out two distinct group of companies — one, already into the FM radio business, bid sensibly, and the other trying to force an entry, bidding high amounts.

While Radio Mirchi bagged seven new frequencies at a total cost of Rs 67-70 crore, Adlabs got a footprint in the four metros besides, Hyderabad, Hyderabad and Bangalore. Delhi attracted high bids for the six frequencies thrown open, four of which were finally allocated. Mid-Day group of Mumbai bid the highest, Rs 31.42 crore, followed by Adlabs and HT Music, each shelling out a little over Rs 28 crore.

Mumbai too saw high bidding amounts for three frequencies with HT Music bidding a whopping Rs 35 crore followed by Rs 28 crore from Adlabs, which incidently was also the highest bidder in Kolkata shelling out Rs 6.11 crore. Radio Mirchi, HT Music, Ananda Offset (ABP group) and Radio Today were the other bidders which bagged the five frequencies in Kolkata.

Interestingly, Bangalore was one city which saw huge variation in its valuation. While Radio Mirchi paid Rs 21 crore to enter Bangalore, HT Music got it cheap for just Rs 6 crore. Radio Mirchi and Adlabs saw great potential in Hyderabad and Lucknow too, for which they bid successfully.

The bidding for the remaining 270 frequencies will be held on January 13.