Network18, TV18 okays rights issue at Rs 30/sh, Rs 20/sh

The board of Network18 Media & Investments has approved a price Rs 30 a share for its rights issue, and TV18 Broadcast -- a group company -- has approved a price of Rs 20 a share for its right issue.

In rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio.

Network18 board has approved a rights issue ratio of 307 shares for every 50 shares. Also, TV18's rights issue ratio will be 41 shares for every 11 shares.

The draft offer documents for TV18 and Network18 rights issues were received by Sebi on 6 March and the observations were issued for both of them on 17 August.

Network18 and TV18 had announced their rights issues, of up to Rs 2,700 crore each, way back in January.

Network 18 being promoter and majority shareholder of TV18 will subscribe to about Rs 1,400 crore worth shares in the rights issue of TV 18 as well. As a result, the net aggregate from the two rights issues would result in fund raising of about Rs 4,000 crore.

These issues were announced alongside a multi-layered deal reached by the media group with Mukesh Ambani-led RIL group. Under the deal, RIL group is selling part of its stake in Eenadu TV channels and an independent media trust set up it would provide funds to Network 18 group promoters in the form of ‘optionally convertible debentures’.

Disclosure: Moneycontrol is part of the Network18 group.

With inputs from PTI