Entertainment Network (India) Limited has expanded its asset transfer agreement with Abhijit Realtors & Infraventures Private Limited to include an additional FM radio station. The Committee of Directors approved the inclusion of Hyderabad 104.8 FM (Kool FM) in the existing deal on 23 January 2026, adding to the three FM stations previously covered under the original memorandum of understanding signed on 16 November 2025.

Expanded Asset Transfer Details

The enhanced agreement now encompasses four FM radio stations for transfer to Abhijit Realtors. The expanded scope includes tangible and intangible assets related to these stations, excluding trademarks and intellectual property rights owned by Entertainment Network India.

Financial Performance and Impact

The four FM radio stations collectively generated Rs. 344.11 lakhs in turnover during FY 2024-25. This represents a minimal 0.64% contribution to Entertainment Network India's total revenue for that financial year, with negligible impact on the company's net worth.

Transaction Structure and Timeline

The proposed transaction requires execution of definitive documents, approval from the Ministry of Information and Broadcasting, and fulfillment of mutually agreed conditions precedent. Entertainment Network India expects to complete the sale by 30 September 2026, subject to these regulatory requirements and documentation processes.

Buyer Profile

Abhijit Realtors & Infraventures Private Limited operates in real estate, radio, and entertainment sectors. The company, incorporated on 14 September 2007, maintains an authorized capital of Rs. 3.00 crores with paid-up capital of Rs. 2.70 crores. Importantly, Abhijit Realtors does not belong to Entertainment Network India's promoter group or related companies, ensuring the transaction remains at arm's length.

Strategic Rationale

Entertainment Network India stated its intention to monetize these radio station frequencies through the asset transfer. The company has already received Rs. 4.75 crore of the total Rs. 19.60 crore consideration, with remaining payments scheduled in tranches before the transaction's completion. The deal will not affect Entertainment Network India's shareholding pattern, maintaining the company's existing ownership structure.

Entertainment Network (India) Limited (ENIL), the company behind Radio Mirchi, continues to navigate significant corporate changes as CRISIL maintains its credit ratings under watch status while the company's promoter restructuring remains pending regulatory approvals.

CRISIL Rating Action and Rationale

CRISIL has continued its ratings on ENIL's bank facilities and debt instruments on 'Rating Watch with Developing Implications' as of January 06, 2026. The rating agency maintains its assessment across all financial instruments:

Ongoing Promoter Restructuring Impact

The ratings were initially placed on watch status on October 8, 2025, following ENIL's disclosure regarding its parent Bennett Coleman and Company Limited (BCCL) and Times Horizon Private Limited (THPL) preparing to file a scheme of arrangement. Under this proposal, BCCL's non-publishing business, including education, investment, broadcasting, media, entertainment and allied activities, would be demerged into THPL.

Key Financial Performance Metrics

ENIL's latest financial performance reflects the impact of business diversification on profitability:

Business Strengths and Market Position

CRISIL's rationale highlights ENIL's continued market leadership in the FM radio broadcasting industry, with presence across 63 cities and strong brand equity through Radio Mirchi. The company maintains a healthy financial risk profile with nil debt and cash equivalents of ₹345.00 crore as of September 30, 2025.

Challenges and Rating Concerns

The rating agency notes that ENIL's operating profitability has been impacted by investments in business diversification. Operating margins declined from 19.90% in fiscal 2024 to approximately 14.40% in fiscal 2025, with expectations of remaining around 13-14% in fiscal 2026 due to investments in non-radio businesses.

Regulatory Timeline and Future Outlook

The proposed reorganization remains subject to approvals from the National Company Law Tribunal (NCLT) and other statutory authorities. CRISIL will continue monitoring developments and their impact on ENIL's credit risk profile, particularly regarding operational and financial support from the new parent THPL. The ratings will be removed from watch status once there is clarity on the demerger's impact on business and financial risk profiles.