Raghav Bahl to infuse Rs 200 crore into Network18 at Over 50% Premium

The Board of Network18 Media & Investments Ltd (Network18) today approved a preferential allotment of Secured Optionally Fully Convertible Debentures (SOFCD) to Rs 200 Cr to RB Holdings (P) Ltd, a Company owned 100% by Raghav Bahl and other Promoters.

These SOFCDs would be convened into 1,81,81,818 underlying shares of Natwork18 @ Ra 110/- per share(*), which is at a premium of over 50 % to the current market price of the Company, within 18 months from the date of allotment. An EGM has been convened on March 31, 2009 at New Delhi to obtain shareholders' approval for this allotment.

The Board evaluated the recent amendments in FDI Guideline and noted that these had opened up fresh opportunities for the Company. It gave an "in principle approval" to increase the foreign investment limit in the Company to 49%, which will come into effect subject to complying with applicable regulatory processes. The Board noted that the preferential allotment to the promoters had opened up a "potential headroom" that could be used to place more than 20% of the fully diluted equity of the Company to Investors including overseas strategic and / or financial investors.

Accordingly, the Board approved a further allotment of 2.50 Crore equity Shares or other convertible instruments via one or a combination of measures, including a preferential allotment, QIP, FCCBs, ADRs, GDRs or any other equity related instruments. The Board believes that the above measures would pave the way to strengthen the balance shares of the all the Companies in the Network18 Group.

(*) Calculated as per the SEBI formula price

Source : Equity Bulls

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