Den Networks up 8%, Goldman stake to increase on pref allotment

Moneycontrol Bureau

Den Networks shares gained more than 8 percent intraday Tuesday as after the preferential allotment approved by the board, Goldman Sachs' shareholding will increase in the company.

The cable TV distribution company said the board of directors today approved the allotment of 1.58 crore equity shares on a preferential basis to affiliates of the Goldman Sachs Group Inc.

The issue price for this preferential allotment is fixed at Rs 90 per share and the total consideration will be Rs 142.43 crore (approximately).

With this allotment, the holding of affiliates of the Goldman Sachs Group Inc (which falls under the non-promoter category) will be increased from 17.79 percent to 24.49 percent.Accordingly, promoter group shareholding will be reduced to 37 percent.In an interview to CNBC-TV18, CFO Manish Dawar said the money would be used for expansion of broadband and reduction of debt.

The board has convened an extraordinary general meeting of the company to obtain shareholders' approval on October 14 for the proposed preferential allotment. At 12:46 hours IST, the scrip of Den Networks was quoting at Rs 82.10, up Rs 3.75, or 4.79 percent on the BSE.Posted by Sunil Shankar Matkar