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 , the company behind Radio Mirchi, has achieved a significant legal victory with the Madras High Court Division Bench completely setting aside all contempt orders and dismissing proceedings initiated by The South Indian Music Companies Association (SIMCA).

Court's Decisive Ruling

The Madras High Court Division Bench delivered a comprehensive judgment on December 10, 2025, that provides complete relief to ENIL. The court's decision addresses multiple contempt petitions and appeals that had been pending since the original litigation began.

Key Legal Developments

The Division Bench's ruling encompasses several critical aspects of the ongoing music licensing dispute:

Complete Dismissal of Contempt Orders: All contempt proceedings initiated against the company have been dismissed in their entirety. The court found that contempt jurisdiction was not maintainable under the present circumstances.

Elimination of Financial Obligations: The court set aside the Single Judge's directions requiring ENIL to deposit 50% of alleged royalty dues. Additionally, requirements to furnish historical music play logs and compute alleged royalty amounts have been completely eliminated.

Court's Legal Reasoning

The Division Bench provided clear legal reasoning for its decision, emphasizing that contempt jurisdiction was not maintainable in the present facts. The court noted that the underlying order in the Civil Miscellaneous Appeals is currently under consideration before the Supreme Court, and the alleged monetary liability remains unquantified.

Background Context

This victory stems from a complex legal dispute involving music licensing rights between radio broadcasters and music rights holders. SIMCA had filed contempt petitions seeking enforcement of certain obligations, but the court found these proceedings legally unsustainable.

Company's Regulatory Compliance

In accordance with SEBI regulations, ENIL has promptly disclosed this significant legal development to stock exchanges. The company's filing confirms that no financial impact arises from the previously contested contempt orders, which now stand completely annulled.

Industry Implications

This comprehensive legal victory provides clarity for Entertainment Network (India) Limited's operations and removes uncertainties that had been hanging over the company's music licensing arrangements. The judgment reinforces the company's position in ongoing industry disputes regarding music rights and royalty obligations.

The court's decision to hear ENIL's case alongside similar appeals involving other industry players suggests broader implications for the radio broadcasting sector's approach to music licensing disputes.