Share price of Den Networks and that of Hathway Cable and Datacom were down up to 4 percent each in the morning session on March 26 after Jio Futuristic Digital Holdings, Jio Digital Distribution Holdings, Jio Television Distribution Holdings, Jio Content Distribution Holdings, Jio Internet Distribution Holdings, and Jio Cable and Broadband Holdings decided to sell stake in the two companies through an offer for sale (OFS) on March 26 and March 30.
In the case of Den Networks, Jio Futuristic Digital Holdings, Jio Digital Distribution Holdings and Jio Television Distribution Holdings will sell 5,54,85,048 equity shares, or 11.63 percent, stake. The floor price for the sale has been fixed at Rs 48.50 a share.
Jio Content Distribution Holdings, Jio Internet Distribution Holdings, and Jio Cable and Broadband Holdings will sell 33,79,83,855 equity shares, or 19.09 percent stake, in Hathway Cable through on March 26 and March 30. The floor price has been fixed at Rs 25.25 a share.
An Offer for Sale (OFS) allows promoters in public companies to sell their shares and reduce their holdings in a transparent manner through the bidding platform of the exchange.
Jio Futuristic Digital Holdings, Jio Digital Distribution Holdings and Jio Television Distribution Holdings together will sell at a discount of 10.8 percent to March 25 closing price of Rs 54.40. Promoters held 86.53 percent stake in the company as on December 31, 2020, data available on exchanges showed.
The promoters' stake is 94.09 percent in Hathway Cable & Datacom. The shares would be sold at a floor price of Rs 25.25 per share, a discount of 11.7 percent to March 25 closing price of Rs 28.6.
Reliance Industries merged Den Networks and Hathway with Network18 Media and Investments and TV18 Broadcast to consolidate RIL’s media and distribution businesses on February 2020. In October 2018, RIL bought majority stakes in Den Networks and Hathway Cable and Datacom Ltd for Rs 5,230 crore.
The share price of Reliance Industries was trading at Rs 1,995.95, up Rs 3.20, or 0.16 percent at 0940 hours. It has touched an intraday high of Rs 2,014.95 and an intraday low of Rs 1,992.50.
Hathway Cable and Datacom share price was trading at Rs 27.35, down Rs 1.25, or 4.37 percent. It has touched an intraday high of Rs 27.70 and an intraday low of Rs 26.30.
The share price of Den Networks was trading at Rs 53.45, down Rs 1.35, or 2.46 percent. It has touched an intraday high of Rs 53.85 and an intraday low of Rs 51.20.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.