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Star India’s rocketing value

February 3, 2016

By Chris Forrester

Last year investment bank Morgan Stanley valued Star India, Rupert Murdoch’s Indian media conglomerate, at a very useful $11.3 billion. Indian banker Edelweiss Securities has also analysed Star India’s value and has concluded that the broadcast group is far more valuable, and places the business at potentially being worth a spectacular $14.3 billion.

Star India is a wholly-owned subsidiary of Murdoch-controlled 21st Century Fox.  Based in Mumbai, the Indian broadcaster transmits 48 channels in eight languages.

Moreover, Edelweiss Securities says that if Star India were to mount an IPO it would immediately become India’s largest media business.

Edelweiss says about 33 per cent of Star’s top-line income is driven by subscription revenues, and the bank suggests that these are expected to grow (on a CAGR) of about 20 per cent over the next two-to-three years, and helped by India’s drive to all-digital transmission and improving ARPUs.

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