Media conglomerate Network18 has got shareholder approval to raise Rs 1,000 crore during the company’s annual general meeting held last week. The company informed the Bombay Stock Exchange that it would raise the funds via issuance of non-convertible debentures (NCDs), foreign currency convertible bonds and/or bond with share warrants in one or more tranches.
The company, however, did not mention how the funds will be utilized for or give a time frame when the tranches will be issued.
It’s also worth noting that Network18’s owner, Reliance Industries Limited (RIL), said that it is looking to sell 3.25 crore shares of the company which represents 3.10% of the equity capital. The sale would bring down RIL’s shareholding to 75% and increase public shareholding to 25%, as mandated by Clause 40A of the Securities Contract (Regulation) Rules. Shinano Retail Private Limited, a fully owned subsidiary of RIL, which is the promoter group company of Network18, would sell the shares through the stock exchange.
The company reported a loss of Rs 1.15 crore for the quarter ended June 30, 2015. It had reported a net profit of Rs 10.58 crore in the preceding quarter, and a loss of Rs 1021.87 crore in the same quarter last year. The company’s total operational revenue stood at Rs 79.36 crore for the quarter, down 90.5% from Rs 841.4 crore in the preceding quarter and Rs 70.83 crores in the same quarter last year.
Other developments at Network18
Earlier this month, Group CEO AP Parigi moved to an advisory role in the group. Parigi was appointed Group CEO of Network18 earlier this year. He had taken over after a management overhaul at Network18, after B Saikumar, Ajay Chacko, RDS Bawa and many other Network18 executives quit in 2014.
In August, Network 18 had hired Rahul Joshi,the editorial director of the Economic Times, as CEO of news and group editor-in-chief.