Entertainment Network (India) Limited (ENIL), the company behind Radio Mirchi, is set to undergo a significant change in its promoter structure as part of a broader reorganization involving its current promoter, Bennett Coleman and Company Limited (BCCL).

Demerger and Transfer of Ownership

BCCL, the media conglomerate that currently holds a 71.15% stake in ENIL, has announced plans to demerge its non-publishing business into Times Horizon Private Limited (THPL), a wholly-owned subsidiary. This demerger includes BCCL's entire shareholding in ENIL, effectively transferring 3,39,18,400 equity shares to THPL.

New Promoter and Shareholding Structure

Upon completion of the reorganization:

• THPL will become the new promoter of ENIL, taking over BCCL's current position.
• THPL will issue one equity share to each BCCL shareholder for every BCCL share held.
• Additionally, THPL will allot 2,86,955 equity shares to Sanmati Properties Limited on a preferential basis.

Concentrated Voting Rights

A notable aspect of this restructuring is the concentration of voting rights in THPL. Following the reorganization:

• Sanmati Properties Limited, Arth Udyog Limited, TM Investments Limited, Vineet Jain, and Bharat Nidhi Limited will collectively hold 50.05% of the voting rights in THPL.
• This group of entities will act in concert regarding their voting rights in THPL.

Regulatory Approvals and Timeline

The proposed reorganization is subject to several regulatory approvals:

• National Company Law Tribunals
• Competition Commission of India
• Other statutory authorities as applicable

While the reorganization agreement was signed on September 23, 2025, the effective date of the scheme and the completion timeline are yet to be determined, pending these approvals.

Implications for ENIL

While this restructuring primarily affects the ownership structure above ENIL, it represents a significant change in the company's promoter arrangement. The move is part of a larger reorganization within the BCCL group, potentially streamlining operations and focusing the non-publishing businesses under THPL.

For ENIL shareholders and stakeholders, it's important to note that this change in promoter does not directly affect the company's operations or management. However, it may have long-term strategic implications as THPL takes over as the primary promoter entity.

As the reorganization progresses, Entertainment Network (India) Limited will likely provide further updates to its shareholders and the market regarding any material developments or changes resulting from this promoter restructuring.

Entertainment Network (India) Limited (ENIL), the company behind Radio Mirchi, has received a favorable interim ruling in its ongoing legal battle with The South Indian Music Companies Association (SIMCA). The division bench of the Madras High Court has granted a stay on a previous single judge order, marking a significant development in the case.

Key Developments

• The Madras High Court division bench has stayed the order of a single judge in the ENIL vs SIMCA case.
• ENIL's appeal has been tagged to be heard alongside a related appeal involving Phonographic Performance Limited (PPL).
• The interim stay will remain in effect until the next hearing, for which a date is yet to be scheduled.

Background of the Litigation

The litigation was initiated by SIMCA against Entertainment Network (India) Limited in the Madras High Court. While the specifics of the original case are not detailed in the available information, it appears to be related to the music industry, possibly concerning licensing or royalty issues.

Company's Disclosure

In compliance with the Securities and Exchange Board of India (SEBI) regulations, ENIL has made a formal disclosure regarding this legal development. The company stated in its filing:

"The order was appealed before the division bench of Hon'ble Madras High Court. The bench was pleased to stay the order of single judge and tagged the appeal to be heard along with appeal against the order in the matter of Phonographic Performance Limited ('PPL'). Both will be heard together and until then the interim stay will continue."

Implications and Next Steps

This stay order provides temporary relief for Entertainment Network (India) Limited as it pursues its appeal. The decision to hear ENIL's appeal alongside the PPL case suggests that there may be similar legal issues at stake in both matters.

The company has assured stakeholders that it will provide updates on any material developments in this ongoing legal proceeding. As of now, the next hearing date has not been fixed, leaving the interim stay in place for the foreseeable future.

It's worth noting that according to the company's disclosure, there have been no changes in the status of any litigation against key management personnel, promoters, or the ultimate person in control of ENIL.

This legal development is significant for Entertainment Network (India) Limited and may have implications for the broader music and radio broadcasting industry in India. Stakeholders and industry observers will be keenly watching for the final outcome of this case and its potential impact on the relationship between broadcasters and music rights holders.