The owner of India’s 20-station network Radio City 91.1 FM, Music Broadcast Private Ltd (MBPL) may launch an initial public offering (IPO) early next year, reports Business Standard.

The IPO’s proceeds will contribute towards the launch of new stations acquired during phase III auctions of FM licensing in the country which are scheduled later this year.

The estimated cost of the new new stations will be $16-$24 million (Rs 1 billion to Rs 2 billion).

Apurva Purohit, Chief Executive, Radio City, told the publication that company is considering the IPO in order to source additional funds to bid for all the stations it requires to maintain its market share.

Radio City currently has a 50 percent share of its target listeners from SEC A and B demographics and needs another 35 to 40 stations from the 800 that are up for auctions.

The company has also earmarked $32.26 million (Rs 2 billion) towards migrating from phase II to phase III licenses.

Purohit told Business Standard: “We needed just enough presence to remain relevant to our core — SEC A and B — and, at the same time, operate in cities where advertising potential is higher.”