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MUMBAI:
Bennett Coleman & Co Ltd (BCCL), which is the holding
company of the Times Group, is picking up a small stake in
IOL Broadband for Rs 50 million.
IOL,
which has a content delivery affiliation contract with MTNL
for IPTV in Mumbai, will make a preferential allotment of
500,000 equity shares of Rs 10 each to BCCL. "We will
be making the allotment to BCCL at around Rs 100 per share,"
says IOL Broadband director Oberai.
IOL
is also making a preferential allotment of 700,000 warrants
to Maula Trading Company for Rs 70 million. "We will
be in raising additional funds to expand our rollout. We plan
to launch IPTV also in Bangalore with BSNL," adds Oberai.
IOL
Broadband has already signed an IPTV deal with the Star network
and is offering 24 channels. "We are in talks with other
broadcasters. We are offering video on demand (VoD) services
and are planning to ramp up our movie library. We currently
have rights for 50 movies," says Oberai.
IOL
is planning to increase the authorised share capital from
Rs 500 million to Rs 70 million, divided into 70 million equity
shares of Rs 10 each. The company also plans to increase the
limit for foreign institutional investors to 49 per cent of
its paid up equity share capital.
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