In a disclosure to Bombay Stock Exchange, Anil Dhirubhai Ambani-promoted Adlabs Films on Tuesday announced that the government of India has approved the transfer of its radio business to Reliance Unicom.

In a filing to BSE, the company said, "The Ministry of Information and Broadcasting has given its no-objection" to the transfer of operation of the FM radio licence to Reliance Unicom pursuant to the scheme of arrangement for the demerger of radio business of Adlabs Films.”

The company further informed that the demerger would be effective from April 1, 2008.

In 2008, the Board of Directors of Anil Dhirubhai Ambani Group (ADAG) had approved the scheme of demerger under which shareholders of Reliance Unicom would be issued one share for each share held in Adlabs Films.

Earlier this year (April 4), the Bombay High Court had approved the scheme of arrangement between the companies.

Experts do believe that the move will offer sustainable revenue and augment profitability for the 800 crore company.

However, according to a spokesperson of BIG FM the management was not commenting any further from what has been already notified to the BSE.