The Revival of BIG FM 92.7 - From Financial Struggles to New Beginnings
BIG FM 92.7, with its tagline “Dhun Badal Ke Toh Dekho,” signifies a change / agility and connects over 450 million people across 1200 towns and 50,000 villages. Owned by Reliance Broadcast Network Limited, founded by Mr. Anil Ambani, it has become a household name. Despite facing financial challenges and entering the Corporate Insolvency Resolution Process (CIRP) in early 2023, there’s hope on the horizon.
Hon’ble NCLT approved Sapphire Media’s INR 261 crore resolution plan, valuing BIG FM at an EV/Sales Multiple of 1.5 based on INR 174 crore revenue.
While comparing the implied EV/Sales multiple of 1.5 with the industry peers median EV/Sales Multiple of 2.84, it seems the transaction is undervalued and hints to the significant upside potential as it stabilizes.
𝐊𝐞𝐲 𝐟𝐚𝐜𝐭𝐨𝐫𝐬 𝐚𝐟𝐟𝐞𝐜𝐭𝐢𝐧𝐠 𝐯𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧:
✅ Financial Distress: Leads to lower valuations due to perceived higher risks.
✅ Uncertainties: Acquisitions through the Company Law Tribunal involve numerous uncertainties, necessitating higher ROI or bargain purchases.
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