Nod for rights issues boost TV 18 shares

Aug 30 2012, 20:16 IST
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The draft offer documents for TV 18 and Network 18 rights issues were received by Sebi on March 6. (Reuters) The draft offer documents for TV 18 and Network 18 rights issues were received by Sebi on March 6. (Reuters)
SummaryShares of TV 18 Broadcast and Network 18 Media & Investments today jumped in the 2-8% range.

Shares of TV 18 Broadcast and Network 18 Media & Investments today jumped in the 2-8 per cent range amid market regulator Sebi's approval for their rights issues.

TV 18 Broadcast scrip ended at Rs 21.95, up 8.4 per cent, while Network 18 climbed 2.29 per cent to close at Rs 31.25 on the BSE.

The rights issues of Network 18 and TV 18 would together raise funds worth about Rs 4,000 crore.

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

The draft offer documents for TV 18 and Network 18 rights issues were received by Sebi on March 6 and the observations were issued for both of them on August 17.

ICICI Securities is the lead manager for the rights issues of both TV 18 and Network 18, which are part of same group.

Network 18 and TV 18 had announced their rights issues, of up to Rs 2,700 crore each, way back in January.

However, Network 18 being promoter and majority shareholder of TV 18 would 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.

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