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Day 7 of FM Phase III: 83 provisionally winning channels with cumulative price of Rs 827 cr
MUMBAI: At the end of the seventh day of the FM radio Phase III auctions, one more channel became provisionally winning. This takes the total number of provisionally winning channels to 83 in 56 cities.
After four more clock rounds held today, which took the total rounds of bidding to 28 so far, 83 channels in 56 cities became provisionally winning channels with cumulative provisional winning price of around Rs 827 crore (Rs 8.27 billion) vis-a-vis their aggregate reserve price of about Rs 395 crore (Rs 3.95 billion). Thus, the summation of provisional winning prices exceeded the total reserve price of the first batch by about Rs 277.05 crore (Rs 2.77 billion) or 50.35 per cent. The total reserve price of the first batch is Rs 550.18 crore (Rs 5.5 billion).
The price for Delhi continued to grow as it received a single bid, taking its provisional winning price to a staggering Rs 123.1 crore (Rs 1.23 billion).
The battle for Mumbai’s two frequencies continued as it received two bids. The provisional winning price of the city rose to Rs 87.8 crore (Rs 878 million) at the end of Day 7 of the auction.
Both Mumbai and Delhi will see a one per cent price increment in the next clock round.
Over the last seven days, competition has been building up for the frequencies in Bengaluru and Bhubaneswar as the players have refused to back down, causing the price of the frequencies to shoot up.
It continued on the seventh day as well, with Bengaluru receiving three bids, thus taking its provisional winning price to Rs 80.6 crore (Rs 806 million). When it comes to Bhubaneswar, five players continued their battle, which took its provisional winning price to Rs 5.3 crore (Rs 53 million).
Chandigarh, which saw no action during the start of the auction, is now seeing player interest building up slowly. As the fight for metros becomes unviable for some players, the bids have now started moving towards the smaller cities.
Chandigarh received two bids as opposed to one yesterday, which increased its provisional winning price to Rs 16.2 crore (Rs 162 million). Interestingly, prior to start of the auctions, many players had expressed their concerns that a city like Chandigarh could remain unsold due to its high reserve price.
Among other cities that witnessed major action is Patna. Although it received four bids compared to yesterday’s five, the provisional winning price for the city’s three frequencies went up to Rs 17 crore (Rs 170 million). Patna is expected to see a further price increment of five per cent applicable for the next clock round.
Like yesterday, 13 cities (26 channels) have not seen any action even by the end of 24 rounds. These include Asansol, Gulbarga, Mangalore, Mysore, Puducherry, Rajahmundry, Siliguri, Tiruchy, Tirunelveli, Tirupati, Tuticorin, Vijayawada and Warangal.
The auction for the first batch comprising 135 FM channels in 69 existing cities of Phase II kicked off on 27 July. The auction activity requirement of 80 per cent continued to remain the same on the seventh day. Bidding will re-commence on 5 August at 9:30 am.