Reliance Industries Ltd (RIL) will sell 3.10 per cent stake in media and entertainment firm Network18 tomorrow at a floor price of Rs 53.40 per share, which would fetch the company at least Rs 173.55 crore.
The stake is being diluted to bring down the promoter holding in the company to 75 per cent to comply with Sebi’s minimum 25 per cent public shareholding norm.
Reliance Industries-owned Shinano Retail Pvt Ltd’s Offer for Sale to sell 3.25 crore equity shares, scheduled to open on July 8, has set a floor price at Rs 53.40 per share.
“The floor price for the equity shares offered under the sale shall be Rs 53.40 per equity share of Network 18 Media & Investments Ltd,” Network18 said in a BSE filing.
This floor price values the shares being sold under the OFS at Rs 173.55 crore.
Reliance Industries, which had last year acquired majority holding in Network18 Media and Investments for Rs 4,000 crore through Independent Media Trust (IMT), is offloading stock to comply with Sebi’s requirement of keeping promoter holding at a maximum of 75 per cent.
Promoter shareholding in the company as on March 31, 2015, stood at 78.10 per cent.
On May 29 last year, in the biggest ever deal in India’s media sector, Reliance Industries acquired control in Network 18 Media & Investments Ltd, including its subsidiary TV18 Broadcast Ltd, for Rs 4,000 crore.
Subsequently, the company made open offers to acquire a controlling stake in media group Network18 and its subsidiaries.
In January 2012, Network18 Group and Reliance Industries had joined hands for a multi-layered deal, under which the Mukesh Ambani-led corporate giant sold part of its interest in ETV channels and got access to content and distribution assets of the electronic media group.
RIL shares closed 1.17 per cent down at Rs 1,003.40 today while the Network 18 Media & Investments scrip ended 2.40 per cent down at Rs 61.10 apiece, respectively on the BSE.