Music Broadcast Ltd Redeems Preference Shares, Returns Rs 107.63 Crore To Investors

Music Broadcast Limited, the media company best known as the owner of Radio City, has completed the full redemption of its non-convertible, non-cumulative redeemable preference shares (NCRPS), marking a key financial move at the start of 2026.

The company announced that on January 19, 2026, it repurchased all 8,969,597 preference shares previously issued to investors. These shares, originally sold at a Rs 100 issue price (Rs 10 face value plus Rs 90 premium), were redeemed at maturity with an additional Rs 20 premium, in line with their terms. In total, Rs 107.63 crore was paid out to preference shareholders from the company’s distributable reserves.

Alongside this redemption, Music Broadcast also declared and paid an interim dividend of 0.1% (Rs 0.01 per share) on these preference shares. The record date for the dividend was January 9, 2026, and the payout was made concurrently with the redemption on January 19.

The company emphasised that the redemption was executed on schedule, with no partial or delayed payments, and that all eligible preference shareholders received their full entitlements. As a result, there are no outstanding dues on these special shares.

Preference shares like these are often used by companies to raise capital with fixed returns and a predetermined maturity, without diluting equity. The successful and timely redemption underscores Music Broadcast’s adherence to its financial commitments under the original share scheme.

Music Broadcast’s core business remains its radio broadcasting network, especially Radio City, which operates across multiple Indian cities. While the broader financial performance of the company has faced pressures in recent quarters, this redemption reflects a structured fulfilment of funding obligations tied to earlier financing arrangements.