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Infomedia18 Loss At Rs 128.8M; To Raise Rs. 999.2M

TV18's publishing subsidiary Infomedia 18 has been struck by a net loss of Rs 128.8 million for the quarter October to December, 2009, 3 times higher than losses recorded in the September quarter. However, it is an improvement over the previous year: 57% lower than the net loss of Rs 305.8 million rec0rded in the quarter ended December 2008. The company has various publications such as Overdrive, Chip, T3 and Better Interiors. Sick Company Application Rejected; Rights Issue Infomedia is in the process of raising equity through a rights issue to the tune of  Rs. 999.23 million to bring it out of the abyss. The issue began on December 29, 2009 and will close on January 15, 2010.  The rights issue consists of 29,827,655 equity shares issued at a premium of Rs.23.50 per equity share aggregating to Rs. 999.227 million. With its losses growing to Rs. 846.5 million in FY 08-09, the company's debit balance has exceeded its share capital and reserves. During the quarter, its application to the Board for Industrial and Financial Reconstruction (BIFR) as required under the provisions of section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 was rejected on technical grounds. Network18, the parent group, extended its financial support and infused liquidity through inter corporate deposits for Rs. 585 million. Download: Financials Revenues have fallen 34.8% to Rs 230.38 million in the quarter ended December 2009 from the September quarter and 37.6% on a year on year basis. Last quarter, we saw that Infomedia18 was yet to turn an EBITDA profit; but revenues had risen 22.7% sequentially.  Infomedia's ad revenues from B2B magazines were depressed and…

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