Cable TV distributor and multi system operator Den Networks has filed an application with the Foreign Investment Promotion Board (FIPB) to modify the approval to include the primary market route as well, reports Indiantelevision. The primary market route could include issuing long term securities to include equity, quasi equity, GDR, QIP, FCCB, preferential allotment, bonds etc subject to shareholder approval and other laws. At the quarter ended September, FPIs held 22.79% stake in the company, while the promoter’s stake was 40.05%.
In July, the company received clearance from the FIPB to increase its foreign investment limit from its then 49% to 74%, which had been deferred in June. It was working on building its broadband base and digitisation of Phase III and IV areas. At that time, FIIs held 20.27% in the company. In March, the company’s board of directors had approved the proposal to increase its foreign investment limit, the decision of which was to go through a shareholder approval. At that point, DEN claimed to have 13 million subscribers in over 200 cities and 13 states in India.
The company’s board also approved the resignation of Shahzaad S Dalal, a nominee director of the company and approved the appointment of Krishna Kumar as non executive nominee director. The company will seek the Ministry of Information and Broadcasting’s approval to appoint Archana Hingorani as non executive nominee director.
Snapdeal-Den shopping TV channel: In January this year, e-commerce player Snapdeal and Den launched a new TV shopping channel known as “Den Snapdeal TV Shop”. The channel would be available to all of Den’s subscribers and extend to other cable and DTH players by June. This was essentially an extension of the pilot announced in September last year. The TV channel would operate as a marketplace for selling unbranded and branded merchandise, services and third-party vouchers, to television home shopping audiences.