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Meanwhile,
7.67 per cent of NDTV shares were pledged with Indiabulls Financial
Services. "It seems NDTV promoters have pledged their shares
while also making a 7.73 per cent (4.8 million equity shares)
market purchase from GA Global Investments," says a source.
The
foreign holding in NDTV has dropped to around three per cent after
the purchase of GA Global Investments by the promoters. The government
regulation stipulates that news channels uplinking from India
can have a maximum of 26 per cent foreign holding.
"The
promoters wanted to increase their stake as it would provide them
some space to dilute when they want to. After doling out ESOPs,
the promoter holding would have fallen from 53.2 to 51 per cent.
The government regulation asks promoters to hold at least 51 per
cent in the news venture," says the source.
The
purchase also allows foreign institutional investors (FIIs) and
NRIs to acquire that many shares more in NDTV till the ceiling
of 26 per cent is reached.
The
promoters had announced in late 2005 their intent to transfer
15 per cent of their stake to daughter Tara Roy who is a non-resident
Indian. But the proposal has still not received regulatory approval.
"If
the proposal to gift 15 per cent still stands, it will limit NDTV's
opportunity to get in a foreign strategic investor. But if that
is dropped, then the equations change," says an analyst with
a global broking firm.
The
analyst also points out that NDTV's general and business news
channels are held in the same company. "In case of TV18 Group,
it is housed in two separate entities with Global Broadcast News
(GBN) holding the general news space," he adds.
Following
the market purchase, the promoters of NDTV have made an open offer
to acquire 20 per cent equity in the company at a price of Rs
438.98 per share. "This is part of the Sebi (Securities and
Exchange Board of India) regulation for promoters who increase
their stake by over 5 per cent in a financial year. The pricing
fixed by the promoters is not aggressive for shareholders to offload.
But if they manage to mop up more shares at that price, it will
be good," says the analyst.
NDTV
shares closed on Monday at Rs 462.60 on the BSE, up 0.6 per cent
from the previous close.
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