IBN18 Broadcast allots shares to TV18 on conversion of warrants

IBN18 Broadcast Ltd has announced that the Allotment Committee of the Board of Directors of the Company at its meeting held on January 22, 2009, has allotted 1,25,00,000 equity shares to RVT Investments Pvt. Ltd (RVT), a wholly owned subsidiary of Television Eighteen India Ltd, against the conversion of equal number of outstanding warrants at a price of Rs 102/- per share (including a premium of Rs 100/- per share).

RVT had paid Rs 153 Crores for subscribing to 1,50,00,000 Convertible Warrants ("Warrants") of the Company, out of which it has exercised the option for conversion of 1,25,00,000 Warrants. The balance 25,00,000 fully paid up Warrants are still pending for conversion.

The Allotment Committee has thereafter allotted 1,63,06,155 equity shares of the Company under the Scheme of Arrangement ("Scheme") for the merger of 24 Hrs Hindi news channel "IBN7".

Consequent to the above allotments, RVT's stake in the Company stands at 20.07% and the shares issued pursuant to the Scheme constitute 9.10% of the fully diluted capital of the Company.

The stock closed the day at Rs.79.40, down by Rs.4.55 or 5.42%. The stock hit an intraday high of Rs.88 and low of Rs.76.30.

The total traded quantity was 12656 compared to 2 week average of 121031.

Source : Equity Bulls

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