Den Networks shares rallied as much as 8.48 per cent on Tuesday after the company informed bourses that global investment firm Goldman Sachs is increasing shareholding in Den Networks to 24.90 per cent from 17.79 per cent earlier by picking up over 1,58,26,039 equity shares for Rs 142.43 crore via preferential allotment. The board has approved the issue price of Rs 90 per equity share for the preferential allotment. The company further added that the transaction would be subject to shareholders approval.
Shares of Den Networks closed 3.19 per cent up at Rs 80.85. The scrip of the cable TV service provider opened the day at Rs 79 and touched a high and low of Rs 85 and Rs 78.10, respectively, in trade. Benchmark BSE Sensex closed 111.30 points down at 28,523.20.
“With the aforesaid allotment, the holding of affiliates of the Goldman Sachs Group Inc will go up from 17.79 per cent to 24.49 per cent. The total consideration will be Rs 142.43 crore,” Den Network said in a BSE filing.
For the quarter ended June 30, 2016, the company reported a standalone net loss of Rs 57.31 crore for the quarter ended June 30, 2016 against net loss of Rs 50.75 crore in the same quarter last year. However, net sales of the company increased by 23.95 per cent year-on-year to Rs 236.97 crore for the quarter under review. It had reported a net sales of Rs 191.18 crore in the same quarter last year.