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The board of Entertainment Network (India) (ENIL) today approved the execution of a business transfer agreement (BTA) with Gamma Gaana for acquiring its music licensing business 'Gaana'. The acquisition will be done on a going concern basis through a slump sale. The size of the agreement is not expected to exceed Rs 25 lakh.
Gamma Gaana is engaged in the business of licensing music audio content and hosting and streaming such music audio content in different languages through applications dedicated to online music streaming under the name 'Gaana'.
The transaction is considered a related party transaction conducted at "arm's length". Gamma Gaana reported turnover of Rs 64.43 crore in FY23, Rs 116.77 crore in FY22 and Rs 117.88 crore in FY21.
The acquisition is expected to be completed by 29 February 2024, subject to execution of the BTA and fulfilment of conditions stipulated in the BTA.
ENIL, a subsidiary of Bennett, Coleman & Company Limited (BCCL)- the flagship company of the Times of India Group, was incorporated in 1999. ENIL operates in radio broadcasting under the brand "Mirchi". Mirchi is the No. 1 Radio Station in India with more than 63 million listeners across the country. Majority of the company's revenues come from its core FM radio operations, while the rest comes from its solutions, digital and other products.
On a consolidated basis, ENIL reported net profit of Rs 1.14 crore in Q1 June 2023 as against net loss of Rs 13.65 crore in Q1 June 2022. Net sales declined 5.24% YoY to Rs 93.85 crore in Q1 June 2023.
Shares of ENIL fell 1.69% to Rs 186.45 on 20 October 2023.
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