MUMBAI: Radio One, the ailing FM radio business of Mid-Day Multimedia where BBC Worldwide has a 20 per cent stake, plans to raise Rs 500 million.

"As part of the investment in our radio business, we are looking at raising Rs 500 million. We are in talks at this stage," Mid-Day Multimedia Group CFO & Mid-Day Infomedia MD Manajit Ghoshal tells Indiantelevision.com.

Mid-Day Multimedia will have a clear plan on how it is to raise the funds once the government comes out with the Phase III policy. The company, which has at this stage decided to raise Rs 500 million for print through a preferential allotment, is hopeful that the foreign direct investment (FDI) cap of 20 per cent on the FM radio sector would be hiked to 49 per cent.

"We are waiting for Phase III to happen after which we hope that FDI limit increases, giving us a chance to look at international partners," says Ghoshal, while dismissing rumours that Mid-Day would exit from the FM radio business. Click here to read more..