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MUMBAI: Network 18 will be raising around Rs 2 billion through
a rights issue to fund the film business, pay back debt and
enter into other media opportunities.
The company, which holds TV 18 Group, also houses Studio
18 and Shop 18. While Studio 18 is engaged in film business,
Shop 18 is a television network dedicated to home shopping.
"We will be using the money to fund our movie business
and also retire some debt. We are also looking at opportnities
in entering into new lines of media business," says a source
in the company.
Network 18 board today also approved the rights issue of
partly convertible cumulative preference shares (CCPS) of
Rs 200 (face value) each in the ratio of 1:5.
A detailed structure and other terms of the issue will be
decided later. The rights issue committee of the Network 18
board will work in consultation with the lead managers to
the issue.
Director Sanjay Ray Chaudhuri shall be excluded from the
promoter category of the company. "In any future correspondence
with the Stock Exchanges / shareholders etc., name of Chaudhuri
shall not be included in the Promoter / Promoter Group of
the company," Network 18 said in a statement.
Meanwhile, TV 18's board has declared an interim dividend
of 40 per cent or Rs 2 per equity share of Rs 5 each.
Network 18 fell 6.2 per cent on the BSE to close the day at
Rs 322.25 even as its board approved a rights issue. TV 18,
on the other hand, slipped 5.42 per cent to end at Rs 525.20.
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