Den Networks Ltd surged 10 per cent on Friday after it informed bourses that a meeting of board of directors will be held on September 20, 2016 to discuss and approve proposal for Preferential Issue of Equity Shares to one of the leading global financial investors. At 12.20 pm, the scrip was trading 7.31 per cent up at Rs 77.85. The scrip opened at Rs 75 and has touched a high and low of Rs 79.80 and Rs 75, respectively. Later, the scrip closed 7.79 per cent up at Rs 78.20.
In a BSE filing the company said, “A meeting of the Board of Directors of the Company will be held on September 20, 2016, interalia, to discuss and approve proposal for Preferential Issue of Equity Shares to one of the leading global financial investors who will form part of the persons belonging to Non Promoter Category, subject to approval of the board of directors, shareholders and in compliance with the all applicable laws including without limitation the provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (as amended from time to time), enabling provisions of the memorandum and articles of association of the company and the Listing Agreement entered into with relevant.”
The preferential issue of equity shares may be subject to stock exchanges and other requisite approvals from the regulatory and other authorities.
For the quarter ended June 30, 2016, the company reported a standalone net loss of Rs 57.31 crore against net loss of Rs 50.75 crore in the same quarter last year. However, net sales of the company jumped by 23.95 per cent year-on-year to Rs 236.97 crore for the quarter under review against Rs 191.18 crore in the same quarter last fiscal.